Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • john2k
    • By john2k 6th May 17, 10:58 AM
    • 3Posts
    • 0Thanks
    john2k
    PPI Reclaim fro Mortgage Protection
    • #1
    • 6th May 17, 10:58 AM
    PPI Reclaim fro Mortgage Protection 6th May 17 at 10:58 AM
    We were sold mortgage protection in the event that one of the policy holder dies the full sum of the protected amount is paid out. We have been paying for this on a monthly basis for nearly 10 years. we have cleared off our mortgage and looked at reclaiming it as PPI. But the insurer is saying that the protection we took out is Mortgage Term Assurance and not PPI, they say that PPI is paid on a monthly basis if one loses their job. Whereas the MTA is paid as a lump sum in the event that one dies. But surely its still a form of payment protection isnt it?
Page 1
    • antrobus
    • By antrobus 6th May 17, 11:07 AM
    • 14,661 Posts
    • 20,782 Thanks
    antrobus
    • #2
    • 6th May 17, 11:07 AM
    • #2
    • 6th May 17, 11:07 AM
    We were sold mortgage protection in the event that one of the policy holder dies the full sum of the protected amount is paid out. We have been paying for this on a monthly basis for nearly 10 years. we have cleared off our mortgage and looked at reclaiming it as PPI. But the insurer is saying that the protection we took out is Mortgage Term Assurance and not PPI, they say that PPI is paid on a monthly basis if one loses their job. Whereas the MTA is paid as a lump sum in the event that one dies. But surely its still a form of payment protection isnt it?
    Originally posted by john2k
    It's life insurance, not PPI.
    • john2k
    • By john2k 6th May 17, 11:21 AM
    • 3 Posts
    • 0 Thanks
    john2k
    • #3
    • 6th May 17, 11:21 AM
    • #3
    • 6th May 17, 11:21 AM
    So there is no reclaim on life insurance even if it's mis-sold? It was sold by the broker rep organising the mortgage at the time
    • antrobus
    • By antrobus 6th May 17, 11:23 AM
    • 14,661 Posts
    • 20,782 Thanks
    antrobus
    • #4
    • 6th May 17, 11:23 AM
    • #4
    • 6th May 17, 11:23 AM
    So there is no reclaim on life insurance even if it's mis-sold? It was sold by the rep organising the mortgage at the time
    Originally posted by john2k
    Why do you think it was mis-sold?
    • john2k
    • By john2k 6th May 17, 12:13 PM
    • 3 Posts
    • 0 Thanks
    john2k
    • #5
    • 6th May 17, 12:13 PM
    • #5
    • 6th May 17, 12:13 PM
    Scare tactics I think as it was first large loan i had ever taken out. I was made to feel how would my partner cope with the payments if something happened to me. And i was put on the spot to make decision trying to get mortgage organised.
    • Once_bitten
    • By Once_bitten 6th May 17, 12:34 PM
    • 70 Posts
    • 33 Thanks
    Once_bitten
    • #6
    • 6th May 17, 12:34 PM
    • #6
    • 6th May 17, 12:34 PM
    "I was made to feel how would my partner cope with the payments if something happened to me." You don't think that was a sensible thing to have?
    • dunstonh
    • By dunstonh 6th May 17, 6:05 PM
    • 87,756 Posts
    • 52,993 Thanks
    dunstonh
    • #7
    • 6th May 17, 6:05 PM
    • #7
    • 6th May 17, 6:05 PM
    We were sold mortgage protection in the event that one of the policy holder dies the full sum of the protected amount is paid out.
    Most people take out life assurance for a mortgage. Common sense and normal.

    we have cleared off our mortgage and looked at reclaiming it as PPI.
    As its not PPI, that would be a bit difficult.

    But surely its still a form of payment protection isnt it?
    There is not a single overlap between life assurance and PPI. They have as much in common as each other as your car insurance does with PPI.

    Scare tactics I think as it was first large loan i had ever taken out. I was made to feel how would my partner cope with the payments if something happened to me.
    Financial advisers and mortgage brokers are required to make you aware of the consequences of your financial affairs. This includes pointing out the consequences of what happens if one of you dies. You have just verified that the mortgage adviser did their job correctly. You should be happy that the correct advice was given.

    Lets say one of you had died and the other couldnt afford the mortgage by themselves or couldnt afford the childcare as they had to either pay for it or stay at home themselves and then lost the house. If you hadnt been told to take out life assurance, then no doubt you would be looking for compensation then too.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,459Posts Today

8,346Users online

Martin's Twitter
  • Beware the hidden £1,000s parents aren't told they must pay for University fees. My new FT column https://t.co/gDOyZDMCr9 (free to read) RT

  • Who do you think came out best in the Corbyn v May battle tonight?

  • Clever by Paxman; subtly testing out "strong & stable" by focusing on u-turns on Brexit view, social care, self employed tax & election date

  • Follow Martin