Life insurance offered by mortgage lenders is too expensive
Thu, 17 Mar 2011
The country's biggest mortgage lenders are selling life insurance to homebuyers which may be more than 50 per cent than they need to pay, according to new research.

Comparison website Money-minder.com found that life insurance and mortgage protection being offered by the biggest mortgage lenders seldom offers the best value and in some cases, mortgage customers are pushed towards taking out the more expensive options.

Ray Black of Money-minder.com said: "When you are applying for a mortgage the lender's adviser or broker will generally also try to sell you some life insurance to cover your mortgage. It is sensible to protect your partner or family in this way but rarely a good idea to blithely accept the first policy they offer without shopping around first."

Mr Black added that a mortgage customer could be offered cover costing a lot more than they could find by comparing a range of insurers . A difference of £20 per month could save a homebuyer over £8000 over 30 years.
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