Cam Bank Insurance

Hi all

Has anyone out there got their mortgage through Cam Bank and then been told it is a 'condition of the mortgage agreement' that life insurance be taken out only through Cam Bank.  Just recieved a E500 quote for one life policy to cover the mortgage?

G&B

Hi Gary and Becky,

I recall that CAM Bank tried to sell us life insurance etc but I just e-mailed them and said we did not require life insurance as we already had it.  They just accepted this and didn't insist on it as a condition of the mortgage.  I think you do get a slightly discounted rate if you take out life insurance, but it was a very small discount and hardly worth having!

We have got stung for this with CAM.  Didntthink too much about it when we completed in Oct as it was a smallish amount and i thought, oh well not excessive for a year.

Didnt realise that was only a payment to the end of the year, and therefore when we had a sizable direct debit taken from our account in Jan for the year 2009, I realised my mistake.  Next year I am going to challenge CAM and tell them I dint want it for 2010.

Worse thing is, we got no warning over cost, they just said it was a condition and took it.  At the time of mortgage we had had so many issues getting to a mortgage, I wasnt going to dispute anything, but now we have it established, I want to avoid this in future.  Anyway, you're not alone!

Foz

Hi

We too have a morgage with Cam bank.

Not sure about the life insureance as we already have it here.

Ham is away this evening but it wil be interesting to  hear what he says.

Have a horrible feeling that he too would have gone ahead with it.

I will let you know

Jan

Hi All,

Most lenders now insist on this and use it as a condition of the mortgage, having to take their product. This is actually illegal but lenders feel they reserve the right to impose this requirement if they are granting the loan and if you do not take it then, no mortgage!!  Not all lenders are transparent about this; in many cases you only find out about it at the notary!  Always ask the question and MORE importantly, how much!!!!!!

Sharon

Do you happen to know if I will have any joy in saying at the end of this year, thank you but I dont want this insurance any more?  I would have thought that having been a good customer for a full year, they would be unlikely to want to lose my custom, and surelythey wont retract my loan if I say that I am no longer willing to pay their life assurance, and evidence to them that I have suitable cover elsewhere

Fozzie

Hi

Spoke to Ham this morning & it does apear that he too took out cover but thought it was only about £48 ( not sure how much in Euros.

But now I have mentioned it to him he is not sure if that was for 12 months or just an initial payment

Not a happy bunny if it isnt  per 12 months, so we  too will be looking to get out of it next year if that is the case.

Thank goodness for EOS & this forum

You get to find out  such a lot. Glad our friends advised me about the site

Best wishes to all of you. lets hope the matter can be resolved aimicably.

Incidently , if Debbie got out of paying it, then  surely she has set a president ( well in the uk it would be the case ) so hopefully there is some hope for us  too 

Jan

Hi Fozzie,

I cannot see that if you gave plenty of notice of cancellation they would have an issue. I am sure from a legal point of view they could not!  Your lawyer should be able to confirm this for you.  Any alternative product you supply will need to show the lender as interest party plus the loan account number.

We were lucky in that Lloyds TSB Spain didn't ask us to take out life insurance with our mortgage. We have friends who have a villa on Elle Valle, and they  had to take out life insurance with their mortgage. When their first year was up they thought they would cancel it but found they were too late!! Apparently in the small print they had to give three months notice, so they have had to take it out for another year!!

Cherrie