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Building societies are charging borrowers for going elsewhere for insurance

Building societies are forcing home buyers to take out their often high-priced in-house insurance policies – or face a penalty of as much as £45 if they shop around.

A survey by comparison site comparethemarket.com named Ipswich building society as the worst offender in a list of 18 lenders which charge home buyers if they choose to buy their buildings insurance at an alternative provider. The society charges £45, although in a statement it said that it plans to drop the charge later this year. Among other lenders, the biggest still continuing the practice is Skipton, which charges £25.