Thread: Mortgages and compulsary Building and Contents Insurance

Due this site I have been digging all and any financial paperwork I can find. Today I found old paperwork from 1998 in relationhip to a mortgage I had with Skipton Building Society. I noticed that they state that I must take their Buildings and contents insurance ass a condition of getting the mortgage with them. Now they charged over £600 for this and then added it to the start of the mortgage - thereby theatretically getting 25 years interest on it.

Is the an unfair term and condition?

Also they give a percentage figure (5%) as the early settlement charge?

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Originally Posted by Hopeful1

Hi RFC1872

Have you got any further with this issue? I know that with an ordinary loan being told you have to take out their insurance would be grounds for a claim, but i don't know if the rules are different for a mortgage.

No I have not got any further with this issue, but I fear for me it may be outwith the 6 years. Though the answer may be useful to others?