UK homeowners that take out a life insurance policy automatically with their mortgage lender might be contributing to an overpayment pot that totals well over £300 million per annum, when compared to the cheapest deals on the market.
Research by the Post Office, who offer both life insurance and mortgages, found that some 35 per cent of customers feel pressured into purchasing a life insurance policy through their mortgage lender . Many, furthermore, believe that they must do so to qualify for the loan .
The PO also found that a further 50 per cent of borrowers rely on their mortgage lender for life insurance because it is convenient. The Post Office is urging consumers to shop around, and potentially save thousands of pounds.
Duncan Caesar-Gordon, speaking for the Post Office, reportedly commented: "This is why its vital that homeowners understand it is not a requirement to take out life insurance with the same company which provides your mortgage . People have the right to shop around across the market and decide for themselves which product offers them the best value and is the most reliable for their life cover needs."




