HC Deb 15 January 2002 vol 378 cc226-7W
Mr. Laxton

To ask the Chancellor of the Exchequer if he will introduce measures to prevent mortgage providers levying an administration charge every time a customer switches their building insurance to an alternative provider. [27260]

Ruth Kelly

Buildings insurance is essential. Without it, it may not be possible for a borrower to pay for repairs. This would affect the value of the property, and consequently the lender's investment. It is not unreasonable for the lender to check that the new policy has the equivalent provisions as the old one, and to make a small charge for this purpose.