Conditional insurance

These days, mortgage lenders do not insist that you take out their insurance in order to get the deal you wish, they may not tie you into its insurance deal, but they may charge you a fee of usually £25.00 if you decide to get your insurance from another company. However, do not let this charge stop you from researching into other insurance offers available. You may be surprised by what you find, you may be able to save more money that what the fee costs, and some insurance companies even offer to pay the fee on your behalf.

There are still a number of building societies that demand you take out insurance with them to gain the mortgage you claim. They offer you their insurance in exchange of a slightly lower mortgage rate. But be aware, it does not always work out like this. Question your lender, ask how much the insurance is likely to cost each month, get quotes from other companies and compare figures to ensure you get the best possible deal.

Questions to ask your lender concerning Conditional Insurance: -

1. Do I need to but insurance from you to ensure I get the deal I wish?
2. How much are the premiums if I do?
3. Do I pay a fee if I get my insurance from another company?
4. If so, how much is it?