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Mortgate company charging admin fee because I changed home insurance

I'm really quite peeved. I recently changed my house and contents insurance to get a far better deal in terms of actual costs and the benefits available.

Out of the blue, I received a letter from Bank of Ireland saying that they are going to charge me £25.00 administration charge because I changed insurers (BoI were not my insurer).

I've spoken to the and they state that they have not long introduced the charge but it is necessary because of all the extra administration they incurr.

Is this right?, I know it's only £25.00, but it's the principle - i.e. the mortage company punishing me because I got a better deal! Anyone else had the same problem?

Comments

  • dunstonh
    dunstonh Posts: 120,911 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is this right?,

    yes.

    These charges used to be commonplace with virtually all lenders charging it. The £25 level hasnt changed from the late 80s. Back then the criteria for acceptance was harder as well. You had to get advance approval.

    The fee is considered fair and valid. Although its a bit of a money maker for the few that still charge it.
    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.
  • robnye
    robnye Posts: 5,411 Forumite
    Part of the Furniture Combo Breaker
    send them an invoice back to them for £25.01 for your time spent notifying them of the insurance change

    probably wont work, but might make you feel better..... :D
    smile --- it makes people wonder what you are up to.... ;) :cool:
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