two basic things here: The bank of England sets base rate and banks charge what they want. Banks are not making any profit on the basis of what the Bank of England charges, rather its the margin they charge so its a futile cause. Secondly inflation is a target of the bank of England and they have to control it. Inflation however is not what you think it is and deflation is our issue now. This deflation was forecasted extremely accuratley whilst we were all talking about inflation in this column by a leading independent financial adviser

This is conditional selling and is illegal. You are not allowed to sell life insurance as a condition of the sale of the mortgage

Flying doc is correct. Most normal life policies however will actually have no lead in period. that lead in period is actually for suicide. In any event check the policy details and you will see the answer there. If there is an issue and you were not informed of it in the client paperwork at the point of sale you will be able to claim.