PPI Reclaiming Discussion Part 5

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  • DavidCH
    DavidCH Posts: 5
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    Sweeneybh...
    I hope you will put in a claim, because it appears that you are out of pocket by up to £3000 (if you're still paying it). The general opinion of these policies is that they were widely mis-sold and of little use to most people.

    Don't use a claims firm !
  • [Deleted User]
    [Deleted User] Posts: 26,612
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    DavidCH wrote: »
    Sweeneybh...
    This thread has 9408 posts some dating back almost five years ago...
    I assume this is the post you were responding to?
    http://forums.moneysavingexpert.com/showthread.php?p=69957606

    That post was made more than a year ago and the poster concerned "Sweeneybhboy" made two posts and never visited the forum again. I doubt he'll read or respond to your belated reply.
    http://forums.moneysavingexpert.com/member.php?u=2467977

    There have been more than 600 posts on this thread since then.
  • I am not sure if this is PPI or not so don't have any idea if it can be reclaimed.

    In 1990 I took out a mortgage with Barclays Bank when I was self employed. I banked with them and they would give me a mortgage for the house but it was for 90% of the value and they said I had to take out an insurance policy to cover that fact that it was so much of the mortgage.

    Problem is they added the £440 cost to the mortgage and I have been paying interest on it for best part of 26+ years. I was reasonably financially savy back then and if given the option I would have paid the £440 rather than add it to what was an expensive mortgage that would take 30 years to pay back. Interest rates in the 1990's were massive compared to now (I think they touched 15% on black Monday)

    I have known it was there for years but never done anything about it mainly because I didn't wan to rock the boat as it were because I have since re-mortgaged with Barclays (the original was an endowment mortgage so I knew I had to do something) back in I think about 2005 or 2006 to what has turned out to be the best tracker repayment mortgage ever in light of the historically low interest rates we have had over pretty much the whole period now. Even now the interest rate is significantly lower than you can earn on savings which is pretty rare and I don't want to lose that as I doubt I would get as good a deal today.

    So the question remains. Is it something I can recalim as I am not sure if it's actually PPI or not but I do know I was missold it as I was told we had to have it and I was never offered the option to pay it up-front. I am pretty sure they said you can only have this policy from us as well.

    I suppose it is a sort of payment protection of a kind as it was supposed to protect the bank if I defaulted.
  • [Deleted User]
    [Deleted User] Posts: 26,612
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    pengbo wrote: »
    I banked with them and they would give me a mortgage for the house but it was for 90% of the value and they said I had to take out an insurance policy to cover that fact that it was so much of the mortgage.
    This is called Mortgage Indemnity Guarantee and protects the lender not you.

    MIG is not in any sense PPI.

    It was indeed a condition of the large mortgage being granted. It was not mis-sold.

    You have no complaint.
  • amersall
    amersall Posts: 17,004
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    Barclays don't you just love em?, putting this on over the term of a 30 year mortgage with interest !!! when the op could have paid this amount in a lump sum, not surprised in the least.
  • [Deleted User]
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    amersall wrote: »
    Barclays don't you just love em?, putting this on over the term of a 30 year mortgage with interest !!! when the op could have paid this amount in a lump sum, not surprised in the least.
    Pretty standard at the time. The OP wouldn't have been offered the opportunity to pay separately, but he could have chosen not to take the mortgage and instead waited until he had a larger deposit.

    If he were to complain now, it would be difficult to prove that he could have afforded an additional £440 upfront as well as his 10% deposit.
  • dunstonh
    dunstonh Posts: 116,038
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    amersall wrote: »
    Barclays don't you just love em?, putting this on over the term of a 30 year mortgage with interest !!! when the op could have paid this amount in a lump sum, not surprised in the least.

    People were given the choice to either pay it immediately or add it to the mortgage. The MIG was also put on a separate sub account which could be paid in instalments (quicker than the mortgage term) or on an ad-hoc basis.

    So, the borrower had choice to do whatever they wanted.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks all. It was worth an ask. Still rankles as I deffinitely didn't get asked what I wanted to do with the £440 fee.
  • [Deleted User]
    [Deleted User] Posts: 26,612
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    pengbo wrote: »
    I deffinitely didn't get asked what I wanted to do with the £440 fee.
    I would imagine the assumption was that if you were taking a 90% mortgage then money was obviously tight already.

    Regardless, you really can't argue that an insurance meant to protect the lender rather than the borrower was "mis-sold". It really was a condition of the loan.
  • Hi

    my husband had a car loan over 15 years ago and we have no idea who the lender was but believe we had PPI how can i go about reclaiming? im tempted to use a PPI company as i have no idea of any details... i also had loans from banks years ago too
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