Morgage PPI

I feel I was mis-sold as I had excellent Redundancy and Sickness cover in my employment conditions which would have covered me for that period. I was never asked about this and also believed it was essential to taking out the morgage.

redundancy payments are not guaranteed. Where they are paid, they do not overlap with MPPI (as it still pays out if you get redundancy pay).

Mortgages are typically 25 odd years. Most sick pay runs out in 6-12 months. The FOS have been rejecting complaints of 12 months sick pay. its not a good reason with MPPI. Its a good reason with loan and credit card PPI though.

I'm still unclear why reclaiming success is lower than other PPIs if the rules are the same?

The products are not the same. Loan PPI, for example, is single premium and added to the debt and gets interest charged on it. It covers a short term debt with only minor consequence if it goes unpaid.

MPPI, on the other hand, is monthly premium standalone cover (how PPI should be set up ideally) and covers a major long term secured debt with significant lifestyle changing consequences if it goes unpaid.

Most MPPI was put in place by trained staff or advisers. So, it was generally sold to a higher standard than an untrained bank clerk or shop worker or sales stand in a supermarket.

Hmmm, I think the ppi only covered my morgage repayments for the year tho. Not full repayment of the morgage.

It didnt need to go further than a year as benefits kicked in after that to cover the interest element.

I did have guaranteed redundancy....honest!

Unless you work for the Govt/public sector then you do not have guaranteed redundancy. In the private sector, it may be in your contract but it is only payable if the company is solvent. If the company does a Woolworths or BHS or one of the many thousands of others that have failed, then you do not get that redundancy payment.

As mentioned, redundancy pay does not prevent MPPI paying out. Here is a real ombudsman decision on a complaint that is similar to yours and it explains the outcome.

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=137618