Homeowners losing £600 million a year

18/05/2007

Mortgage holders are losing £600 million a year when taking out insurance with their mortgage provider.

Estimations completed by Post Office Financial Services resulted in over 5 million people were losing large cash blindly when purchasing their insurance from the same firm they completed their mortgage deal with. The Financial Services feel that people should shop around to get the best deals possible.

Nearly 63 per cent of people said that it was convenient purchasing building, life insurance and contents with their same mortgage company.

They also stated to the 12 per cent of respondents who guessed purchasing insurance from their lender was necessary and the four per cent who guessed not doing so would put their mortgage deal in danger, thinking that buying insurance is not part of a mortgage deal.

Head of insurance Phil Ashkuri at Post Office financial services, said: "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."

There have been some issues with travel insurance in the past, holidaymakers had been told to purchase their insurance from an independent broker, as most people really should buy this insurance from their travel agents.

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