Brits wasting almost £500m on mortgage protection

The research stated high street banks are raking in cash, with some charging around twice as much as necessary to cover monthly outgoings.

Although cover is available from some companies for as little as £400 per year, Columbus estimated that homeowners taking out protection from their lender could be spending around £689 for the same level of cover, essentially wasting around £289 per year. Spread across every home taking its insurance from its lender, this equates to a £471m bill for Britons every year, simply because they are failing to shop around.

“We think that it is scandalous that banks are charging so much to cover their own customers. It is a natural thought to turn to your bank or lender when looking at this kind of insurance but, at the same time, you would expect them to be looking to provide you with a good deal,” commented Rob Thomas of Columbus.