People pressured to take mortgage lender's home insurance
2nd July 2008
New research has revealed that homeowners feel pressured to buy their home insurance from their mortgage lender.
Gocompare.com showed that a lot of consumers are not shopping around before making a decision on which provider to go for.
Of those polled, over 20 per cent bought their current home insurance from their mortgage lender, 12 per cent of whom said they did so because they felt "under pressure" or thought that is was a "compulsory" part of their mortgage deal.
Convenience appeared to be an important deciding factor in who to go for as two thirds of people said this was the reason they got their home insurance from their mortgage lender.
Hayley Parsons, chief executive of Gocompare.com said: There can be a danger of pressure selling when margins on the loan itself are so small, but customers need to know that they are under no obligation to buy buildings and contents cover from their lender."
Ms Parsons went on to advise homeowners to "shop around for their building and contents insurance" to ensure they got a "competitive rate".