Money Mail victory as Nationwide scraps compulsory insurance cover for first-time buyers helped by a family deposit  

By Money Mail Reporter For The Daily Mail

Updated:

First-time buyers with Nationwide who are helped by a family deposit will no longer be forced to buy insurance covering the risk of a parent going bankrupt.

In a Money Mail victory, Nationwide has barred all law firms that do conveyancing work for its borrowers from asking customers to take out the cover. 

Last year, we revealed how one firm was demanding first-time buyers pay for the mortgage indemnity insurance.

Victory: First-time buyers with Nationwide who are helped by a family deposit will no longer be forced to buy insurance covering the risk of a parent going bankrupt

Victory: First-time buyers with Nationwide who are helped by a family deposit will no longer be forced to buy insurance covering the risk of a parent going bankrupt

Banks say buyers only need this cover in situations such as when a parent sells a property to their child at a substantial discount. 

There were fears some law firms were trying to wring more cash out of buyers. 

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

Most watched Money videos