Post Office: Insurance from mortgage lenders costs too much
A new report from the Post Office warns that taking insurance from your mortgage lender could cost you more than you need to pay. In fact, it says, the practice is costing consumers in the UK £600 million per year to the half of all mortgage holders who have taken out insurance from their lender. That comes to £120 each for five million UK borrowers who have taken their lender’s home and life insurance. Nearly two-thirds of them have said that they did so because it was more “convenient”.
But, as the Post Office’s head of insurance has said, “Convenient doesn’t always mean cheap.” His advice is to look around for better deals from non-lender insurance providers. One person in eight of those surveyed believed that it is required that they buy their insurance from their lender, something that is just not true according to the Post Office. And, in fact, by shopping around for less expensive coverage the average homeowner can save up to £173 in premiums just on home insurance according to Post Office data.