Want to switch buildings insurance but current company wants to charge £25 exit fee..?! Is this legal?

[eltham]

We have a Northern Rock mortgage with attached buildings insurance. They've sent a renewal letter for buildings insurance which shows up as a £40 increase from last year. I'm sure I can get it cheaper but NR want to charge a £25 exit fee. Does anyone know if this is legal?

Bumping for you.

I think it is normal - or at least it used to be - I recall having to pay many years ago when the insurance connected with my mortgage was changed. The new insurance company I went to then reimbursed me the fee. You would need to check that this is still the case with any likely new insurer. Chances are you will find cheaper insurance anyway as the ones provided by mortgage companies are usually not very competitive so it may still be cheaper to pay the £25 exit fee yourself.

Is it on your orginal paperwork if it's in the small print then yes but if not then not part of your original agreement iyswim

thanks..good idea to try and negotiate it with new insurer though - will try that