Decreasing Mortgage Plan - can I claim?

ng1412 · 18 January 2018 at 12:00PM

I am going through my numerous credit cards, mortgages and loans to see if I can reclaim anything missold. What a huge job given I have no paperwork for any of it seeing as the majority of them were taken out in the 90s. Any suggestions on how to find out.

Anyway, I have come across an old email to my then bank manager as follows:

"I also pay £62.18 to Zurich payable per month for decreasing mortgage cover plan which started 1 Sept 2005 for a term of 25 years, term only, single life. £120,000 benefit is £1200 per month on female life. No TPD covering own occupation, no waiver of payment".

This makes no sense to me, anyone be able to tell me whether it is something I can reclaim? I remember numerous times I took out mortgages I always had to pay additional things, I guess you always have to but maybe this was not reclaimable because it wasn't tied to the mortgage company?

TrickyDicky101 · 18 January 2018 at 12:26PM

That's life insurance and not PPI. For most people, life insurance is a very good idea. Why do you think it was missold?

When does that email date from and how old were you when you took out the insurance? Did you have any specific medical issues? £67pm seems like a lot of money for the given cover but I could be wrong.

ng1412 · 18 January 2018 at 12:42PM

Thanks, I’m just going through anything that looks remotely like it could be misselling and then discounting it if it isn’t something I can claim. I have a lot to go through!

The email is from 2007 and I would have been 35 at the time I took it out (2005) and absolutely no health issues at all. I also worked full time and would have had some level of life insurance cover through work.

dunstonh · 18 January 2018 at 1:06PM

Decreasing Mortgage Plan - can I claim?

Only if one of the life assured is dead.

The email is from 2007 and I would have been 35 at the time I took it out (2005) and absolutely no health issues at all.

Your health position is not the only thing that can kill you. Nobody knows their date of death.

I also worked full time and would have had some level of life insurance cover through work.

Death in service is only subject to employment and is discretionary (as many have found out when the employer took it away). Plus, its main purpose is to cover short term loss of income to spouse/partner and reduced pension benefits. It is not normally considered suitable for covering a mortgage.

TrickyDicky101 · 18 January 2018 at 1:08PM

Unfortunately high cost isn't something you can claim misselling for. That is high though - for example, I took out £90k of level term cover in 2011 at the age of 37/8 with a chronic (but managed) medical condition for 10 years for £17pm (also with Zurich). This only covered death please note and was for a shorter term (so less risk of payout to the life co) but even so it makes your £67pm for decreasing term look expensive.

dunstonh · 18 January 2018 at 1:14PM

The wording means a lump sum and an income. It is possible it is a segmented plan with life assurance and Permanent health insurance. That would certainly put it in the ballpark.

If it was sold via a bank, then you would expect to be expensive. I have seen examples of more than double the premium an IFA would arrange it for compared to a bank arranging it. Banks are expensive (and often low quality compared to whole of market options). However, as said, its not a reason for complaint.

ng1412 · 18 January 2018 at 3:53PM

Thanks all for the clarification, I will put it to one side and carry on reviewing the rest of my potential PPI claims!

Decreasing Mortgage Plan - can I claim?

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