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Advice on mortgage life insurance

Can anybody give us some advice on our mortgage life insurance please?
We recently had a meeting with our bank and were told that their life insurance was a condition of our mortgage so we signed in good faith. We've since had a mortgage offer through and it says that their life insurance is in fact optional. Are they allowed to state that we have to have their insurance and if not what are our rights now (we have not paid any premiums yet)

Comments

  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I don't think that many (any?) lenders make THEIR life insurance compulsory, although they may suggest you should have SOME life insurance.

    If I was you I should take your insurance wherever you like and they can get lost. If it's not a condition in your mortgage offer, it's not binding.

    If you are paranoid about if affecting your mortgage offer, then just cancel the policy immediately after completion of your mortgage.
  • dunstonh
    dunstonh Posts: 121,283 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Compulsary life assurance was outlawed a few years back.

    You should complain because people doing that are doing no good for the genuine advisors out there.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks for the replies. We will be cancelling the insurance and were thinking of putting in a complaint letter anyway - now we will.
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