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
    • 15,045 Posts
    • 21,383 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
    • 15,045 Posts
    • 21,383 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
    • 34 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
    • 89,516 Posts
    • 54,967 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.
    • haras_nosirrah
    • By haras_nosirrah 14th Jun 17, 5:59 PM
    • 1,243 Posts
    • 2,331 Thanks
    haras_nosirrah
    • #8
    • 14th Jun 17, 5:59 PM
    • #8
    • 14th Jun 17, 5:59 PM
    The broker has sold it the right way. It is a monthly policy which is cancellable, you had a financial need as if you or your partner had died the other would have been left in the !!!!! and possibly lost the house. He did a good job. I had a client who once asked me 'what would happen if I paid the policy for 25 years and never claimed on my life policy - do I get a refund' my answer was 'no as you could have claimed and it would have paid out if you had died. If you haven't claimed in 25 years then I suggest you throw a party and be happy in the fact that you and your wife are still alive and kicking.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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

3,271Posts Today

8,283Users online

Martin's Twitter
  • RT @thismorning: 'Sometimes the best gift is releasing somebody else from the obligation of having to give to you' says @MartinSLewis. Do y?

  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Follow Martin