Mortgage Indemnity payment Mis-sold????

A question about : Mortgage Indemnity payment Mis-sold????

Can anyone advise me please as to whether this was wrong. I had to pay mortgage indemnity on my mortgage, which I was told at the time was basically an insurance for the building society which I had to pay for them in order to get my mortgage and that it was a one off payment (it was just under Ј700) and was to protected the money they had lent in case the house had to be repossessed. The mortgage was arranged through an agent who stuck this indemnity on to the mortgage and therefore we have been paying interest on it ever since.

Thank you for any help.

Best answers:

• Taking the policy was an exercise of legitimate commercial judgement by the lender.
  The alternative to adding it to the loan was to pay it up front or to raise a larger deposit.