A fifth of borrowers 'buy home cover from their lenders'

Around a fifth of homeowners in the UK buy home insurance from their mortgage lenders, according to new research.

The study by Gocompare.com found that 19 per cent of them bought the cover as they felt it represented good value, while 12 per cent claimed they felt pressured into getting it.

A third of people stated that it was also due to convenience, but the chief executive of the website, Hayley Parsons, said as lenders provide cover from one company, it may be the most competitive deal.

She explained: "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."

Banks in the UK were recently urged by an expert to treat borrowers fairly.

David Kuo, head of personal finance at Fool.co.uk, made the call after research found that such organisations have increased their share of the mortgage market in recent months.

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