Some mortgage lenders offer excellent introductory mortgage deals. However, some of these same lenders make these offers conditional on you accepting their own home insurance and mortgage payment protection insurance. This is known as a 'tie-in'.
More often than not, the premiums you pay for these tie-ins are substantially above what you could pay if you took out separate cover with an independent insurance provider. In other words the premiums offered by lenders are not exactly competitive.
Remember, it is not compulsory for you to take out the insurance recommended by your lender. If it was, there would be no need for independent insurers to offer the same types of insurance because there would be no market for them. Spend half an hour watching television, however and you'll see that there are dozens of insurers offering home and contents, life cover and income protection. Don't be pressured - there are lots of lenders who would be willing to offer you a mortgage.
