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The mortgage provider time trap

Published on 11 February 2013 12:20 AM

Loyal customers aren't always offered the best deal on home insurance

  • More than a third (37%) of people who have home insurance with their mortgage provider have never considered changing
  • 36% of those that haven't shopped around have had their home insurance with their mortgage provider for over 20 years
  • 38% of those who do shop around find that home insurance with their mortgage provider is too expensive

Loyal customers aren't always offered the best deal on home insurance by their mortgage providers, according to research undertaken in January 2013* by Age UK Enterprises, the commercial arm of the charity.

More than a third (37%) of people who have home insurance with their mortgage provider have never considered changing. While this group is relatively small , they often stay with them for a long time without considering alternatives. 36% of those that haven't shopped around have had their home insurance with their mortgage provider for over 20 years.

However many do consider changing but still remain with their mortgage provider. For example, 67% of those surveyed said they have considered changing providers. One fifth (22%) of these - while having considered changing providers - haven't changed simply because they just haven't got round to it.

Nevertheless there are learnings from those that do shop around. Well over a third (38%) of those who purchased a different option felt that their mortgage provider's home insurance offering was too expensive. Supporting this 37% of home owners who had changed their home insurance from their mortgage provider did so after they had shopped around, and a further quarter (27%) swapped as soon as they had paid off their mortgage.

There are a variety of reasons for why people don't consider changing home insurance providers; but principally inertia sets in. Nearly half (45%) of those surveyed haven't consider changing because they trust their mortgage provider to give them the best deal. Concurrently 65% of those who purchased home insurance with their mortgage provider did so because they felt it was just quicker and easier, something that nearly three quarters (73%) of those who have chosen other providers disagree with."

Commenting on the findings, Gordon Morris, Managing Director, Age UK Enterprises said: 'People may have taken out their home insurance with their mortgage provider many years ago when there were fewer options available, and may have assumed that this would be required of them.

'Our research clearly shows a number of people are staying with their mortgage provider for a considerable number of years without shopping around for a better deal to ensure they are getting real value for their money.' 

'It is vital that people ensure they have the right home insurance policy to fit their individual needs and budget, rather than just sticking with what they know. In doing this consumers are not only at risk of not getting value for money but also not having the right cover in place. This can end up being a costly mistake if a claim needs to be made.'


* Research commissioned from Watermelon Research on behalf of Age UK Enterprises in January 2013. Total sample size was 2000 of the 55+ age group. Figures were weighted to be nationally representative of the GB population aged 55yrs+.

For further information, please contact Imogen Dunn or Rhys Phillips on 0207 360 7877 or

Ref: ME, JV, SK, SD

Age UK
For media enquiries relating to Wales, Scotland and Northern Ireland please contact the appropriate national office: Age Scotland on 0131 668 8055, Age Cymru on 029 2043 1562 and Age NI on 028 9024 5729.

Age UK is the new force combining Age Concern and Help the Aged, dedicated to improving later life.

We provide free information, advice and support to over five million people; commercial products and services to over one million customers; and research and campaign on the issues that matter to people in later life. Our work focuses on five key areas: money matters, health and well being, home and care, work and training and leisure and lifestyle. We work with our national partners, Age Scotland, Age Cymru and Age NI (together the Age UK Family), our local Age UK partners in England and local Age Concerns. We also work internationally for people in later life as a member of the DEC and with our sister charity Help Age International.

Age UK is a charitable company limited by guarantee and registered in England (registered charity number 1128267 and company number 6825798). Age Concern England and Help the Aged (both registered charities), and their trading and other associated companies merged on the 1st April 2009. Together they have formed the Age UK Group ("we").  Charitable services are offered through Age UK and commercial products are offered by the Charity's trading companies, which donate their net profits to Age UK (the Charity). 

Age UK Enterprises

To fund its charitable activities, Age UK needs a constant flow of independent income. It seeks to achieve this through a balance of traditional fund raising and trading activities.
The trading activities, through Age UK Enterprises enable it to meet the needs of older people, through products specifically designed to meet these needs; quality products such as general insurance and energy Services.  Age UK Enterprises is the commercial services arm of Age UK.

Age UK Enterprises incorporates: Age UK Energy, Age UK Insurance Services and Age UK Guaranteed Funeral Plans. Log on to for details.

Age UK Motor Insurance is now proudly on Which? Magazine's Recommended Providers List of car insurers. Which? Magazine analyse the whole UK car insurance market to find out which brands offer the best policies. Instead of picking Best Buys based on specific scenarios (that are only relevant in specific cases), the experts at Which? magazine focus on the quality of policies.

Age UK Enterprises is part of the Social Enterprise Coalition; an organisation that represents a wide range of social enterprises with the overarching aim of working in partnership for the creation of effective sector products, services and knowledge-sharing networks to help stimulate and encourage growth, development and sustainability of social enterprises in England.

Age UK Enterprises scooped up the ‘Customer Care Award' at the prestigious 2010 British Insurance Awards. The judges singled out Age UK Enterprises for its exceptional customer service which is provided by Ageas Insurance Ltd, as well as for glowing customer testimonials with a ‘world-class' customer satisfaction score of 85 per cent, and 89 per cent of customers saying that they would recommend Age UK Enterprises/Ageas (Insurance UK).

Age UK Enterprises Limited is authorised and regulated by the Financial Services Authority for insurance mediation (311438) and to introduce potential annuity customers. Age UK Enterprises Limited is registered in England and Wales No. 3156159, registered office: Age UK, 7th Floor, One America Square, 17 Crosswall, London, EC3N 2LB. VAT Number: 710 3843 66. Age UK Enterprises Limited is a wholly owned subsidiary of Age UK (registered charity No. 1128267 and registered company No. 06825798) and donates its net profits to Age UK.

Age UK England (charity number 261794) has merged with Help the Aged (charity number 272786) to form Age UK, a charitable company limited by guarantee and registered in England: registered office address Age UK, 7th Floor, One America Square, 17 Crosswall, London, EC3N 2LB, company number 6825798, registered charity number 1128267.

Age UK Home Insurance

Age UK Home Insurance offers:
• Pay by free monthly instalments (0% APR Representative)
• Award-winning claims service
• A low £45 excess (for most claims)*****.
• Automatic buildings cover of up to £500,000 and contents up to £60,000
• Personalised service, tailored to older people's needs and treating customers as individuals
• Contents cover against perils such as fire, flooding and theft that include the option of building insurance.
• A 24 hour domestic emergency helpline providing advice on where to find qualified and authorised repairers.
• A free legal helpline for independent and confidential advice on any legal problem.
• A range of additional benefits are automatically included e.g. costs of alternative accommodation, accidental damage to mirrors and glass, spoilage of frozen food and replacement of external locks if keys are lost or stolen.
1) At Christmas, Age UK provides its customers with a 10% seasonal uplift to their Home Contents maximum claims limit free of charge.  This could represent hundreds of pounds of extra cover at no extra cost.
2) No hidden fees to pay
3) New for Old cover

For more information on Age UK Home Insurance please call 0845 602 9183******or log on to our website, 

***** Exceptions include £1,000 for subsidence, ground heave or landslip under the buildings section; £100 for property under ten years old and £245 for escaping water

****** If you call the 0845 number for Home Insurance you will be dealing with Ageas Insurance Ltd which provides and manages Age UK Home Insurance and is not a member of the Age UK Group of companies. Ageas Insurance Limited is authorised and regulated by the Financial Services Authority

About Ageas
Ageas UK (formerly Fortis UK) is a leading provider of award-winning Personal, Commercial and Protection insurance solutions in the UK. Ageas UK distributes both its Non-Life and Life products through a range of channels including brokers, IFAs, intermediaries, affinity partners and the Internet, as well as through its retail strategy via its wholly or partially-owned companies (Ageas Insurance Solutions, Ageas Protect, Castle Cover, Kwik Fit Insurance Services, RIAS, Tesco Underwriting and Text2Insure). 
Insuring around 8 million customers and working with a range of partners, Ageas is recognised for delivering consistent and high-quality customer experiences. It employs over 5,400 people with a head office based in Eastleigh and others based in Belfast, Birmingham, Bournemouth, Glasgow, Gloucester, London, Reigate and Stoke-on-Trent.
Ageas is an international insurance company with a heritage spanning more than 180 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Germany, Hong Kong and UK. It is the market leader in Belgium for individual life and employee benefits, as well as a leading non-life player, through AG Insurance, and in the UK, it has a strong presence as the second largest player in private car insurance and the over 50's market. It employs more than 13,000 people and has annual inflows of almost EUR 18 billion.


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Last updated: Oct 20 2022

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