Homeowners could be losing out on millions of pounds every year by taking up an insurance policy offered by their mortgage provider, new figures indicate.

According to a study by the Post Office, some 8 million consumers are losing up to £40 million a year by choosing home and life insurance supplied by their mortgage lender instead of shopping around, money which could help many with debt management and secured loan repayments.

Head of insurance at the Post Office Phil Ashkuri said: "Convenient doesn’t always mean cheap.

"Many homeowners don’t realise taking out buildings and contents insurance with their mortgage lender is generally not the best value deal. And it’s not compulsory for securing their mortgage."

The study revealed that one in 20 believe that their mortgage would be at risk if they don’t choose an insurance product offered by their lender.

Meanwhile, two thirds claimed to not shop around for a competitive deal as their lenders’ insurance is convenient.

Earlier this week, Abbey reported that Britons spend an average of £16,000 every time they move home on legal fees, removals and decorating, a figure which could help many make repayments on Secured Loans and other types of borrowing.

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