The Post Office has released research showing that mortgage customers who choose to buy the life insurance policy are overpaying by £310 million every year.
According to the research 34% of people when filling in a mortgage application choose to buy life insurance through their mortgage provider, this is a potential spend of £2,000 each.
Many customers think this cover is compulsory, they do not realise that they do not have to take out this policy and if they shopped around they could find it cheaper with other providers.
35% of people who chose their mortgage provider’s life cover said they felt pressured into doing so, or believed it was necessary to buy the life insurance from the same provider as their mortgage.
More than half thought it was just easier to get their life insurance from the same source rather than shopping around for a better deal and potentially saving hundreds of pounds.