Taking insurance from mortgage lenders 'could cost consumers'
Published On 21 May 2007
Almost half of all homeowners with mortgages could be losing out financially because they opt for their lender's insurance policies, a new report argues.The Post Office has found that approximately five million people from the UK with mortgages lose a combined £600 million every year as a result of uncompetitive home and life insurance.
Just under half (46 per cent) of homeowners opted for insurance deals from their mortgage lenders, despite the fact that these could entail larger premiums.
More than one in ten (12 per cent) people thought that it was compulsory for them to buy insurance from their mortgage provider.
"Convenient doesn't always mean cheap. Many homeowners don't realise taking out buildings and contents insurance with their mortgage lender is generally not the best value deal," explained the Post Office's head of insurance, Phil Ashkuri.
"Our advice is shop around as there are better home insurance deals out there from standalone providers."
Recently, the Rightmove found that the average house in the UK now costs £237,361.
