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I am currently going through the re-mortgage process, my advisor told me he legally has to meet up with me and advise me on buildings and contents and life insurance as per FSA guidelines. I work for an insurance company and get discounts – so do not want to do this. Is this the case?

7 Thoughts on My mortgage provider is telling me he legally has to advise me on insurance is this true?
  1. Reply
    ♥ Minki ♥
    April 12, 2012 at 7:50 am

    He has to document that he has discussed them with you but you do not have to take them with him.

  2. Reply
    April 12, 2012 at 8:26 am

    Yes, they are required to carry out a fact finder and offer best advice.

    You don’t have to take that advice.
    You tell them that you are coming to them for a mortgage and someone else for insurance.

    I notice you say “my advisor” I would use the expression “my salesperson”

    Listen politely, say “no thankyou” and when they ask you “why not” say “because I don’t want it” Don’t get into an argument or discussion, you don’t have to justify your decision to them.
    They will try to break down your resistance. Stand firm

  3. Reply
    April 12, 2012 at 8:27 am

    Yes, just because he has to discuss it with you doesnt mean you are obliged to take any cover with him, although you never know, they may be able to do you a better deal than your employers.

  4. Reply
    April 12, 2012 at 8:59 am

    If the mortgage provider also offers insurance they will definately want to give you the sales pitch (cleverly disguised as “advisement”) but there are federal regulations that prohibit them from forcing you to take their additional products in order to get approved for the mortgage. if you let them know early on in the sales pitch that your work for an insurance company they may not give you the hard sell and you’ll both save some time. Do, however, listen to what they require for insurance regardless of where you get it, so you can get insurance that meets the requirements.

  5. Reply
    April 12, 2012 at 9:31 am

    never heard of that before. you can get your insurance wherever you want. he just wants the sale. you may want to change mortgage companies if they pressure you too much..strange..

  6. Reply
    Doctor Deth
    April 12, 2012 at 9:49 am

    Advice is one thing – doesn’t mean you have to buy the insurance from him or anyone he recommends – he’s just going to let you know how much coverage you should have to protect yourself

  7. Reply
    Finance man
    April 12, 2012 at 10:47 am

    He is required to tell you about it but you don’t have to take it. He shouldn’t be pushing you into something you don’t want however if he is whole of market he may have some insurance products that may be more competative than what you get from the firm you work for.

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