My bank is insisting we take life assurance with them for our mortgage

We have had quotes from other companies that are much cheaper but our bank insist that we take theirs - can anybody help with advice on this please?

thanks

Hi,

We had the same thing, the bank insisted that we took at least 50% of life assurance with them - it was one of the terms of the mortgage. We were advised that after the 1st year we would be able to cancel it & get it elsewhere for almost half price!!

Unfortunately the bank then offered a "discounted" interest rate if life assurance was taken, meaning it was pointless moving. Its a scam, I don't know how they get away with it, oh yes I do, its Spain!

Mike

Thanks for the reply.

Do you happen to know are they legally within their rights to do this? They've stuffed us so many other ways financially already - CAM bank by the way.

 If you already has a life insurance, you just can state this and have the Bank using this.

Hi,

Unfortunately banks have been insisting on this for a long time now and indeed make it a condition of the mortgage, there are banks that do not impose their insurances on clients but only a small number.

As others have said this is just another way for the banks to make some money !!

We are with Bancaja and they rush us annually for life insurance that we were forced to take out when we started 3 years ago - the sum equates to 4 months mortage payment and every year I row with them and every year I have to pay them - grrrrrrrrrr

The policy docs we have are in Spanish so god knows what we are covered for..... but as we have interest only mortgage they are insistent that its part of the mortgage set up and the cover we have is at the lowest level possible 

See if you can find a lender that doesnt require insurance or maybe even a UK lender, that is what I wish we had done with a few years epericence of all this - I am sure if your spansih solictor wrtote to the bank and told them that this is not a legal requiremnt it might help but then the bank wil say "aaah but it is OUR requirement" so if you want to play you have to pay !

Rgds

Mark

We had a time with el monte bank see an independant financial adviser he will sort it out with the Bank no problem

Rod