More than one in ten consumers feel pressured to buy home insurance from their mortgage lender, according to Gocompare.com.
The survey also found over 80% of consumers buy home insurance from their lender because it is convenient, rather than being good value for money.
Gocompared.com’s survey found 20% of homeowners bought home insurance from their mortgage lenders, with 12% saying they felt under pressure to buy or believed it was compulsory to buy insurance from their lender.
Hayley Parsons, chief executive of Gocompared.com, comments: “We know that mortgage deals have been harder to secure of late but we really don't want to go back to the bad old days when customers were often under pressure to buy the lender's products to help secure the loan.
“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.”
Parsons says lenders’ insurance products are not usually the most competitive available and could cost as much as £110 a year more.
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