Reading this Money Supermarket article about various fees associated with buying a house, I came across an "Own Building Insurance Fee", which is described as follows.
This is charged by your mortgage lender for checking you have taken out building insurance if you choose not to buy it from them. The fees are fairly small – around £25 to £50 each.
The assesment of "fairly small" seems to be relative to other fees as it still seems to me like quite a lot for what I imagine is essentially glancing at a document. I can't escape the feeling that the primary purpose of the fee is to encourage homeowners to buy insurance from the mortgage provider, by financially punishing them for buying elsewhere.
Is this not a breach of anti-competition law?