Skipton Building Society has stopped insisting customers buy insurance from it if they want to take up its best mortgage offers.
Jennifer Holloway, head of communications for Skipton, said: ‘We are testing this out and seeing what the reaction is.’
If successful, she said, the lowest rates on products in the future would be offered without the need to take out Skipton’s insurance.
Other building societies said they had no intention of changing the provision of their mortgages.
Chris Holland, senior public relations officer for Leeds & H olbeck, said: ‘There is no compulsion for customers to buy our insurance, but they will be charged a slightly higher interest rate on some products if they do not.’
Mortgage specialist for London & Country, David Hollingworth, said: ‘Borrowers are looking for fewer tie-ins and want transparency and value.’
