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  • FIRST POST
    • anoif99
    • By anoif99 30th Nov 17, 10:19 PM
    • 7Posts
    • 0Thanks
    anoif99
    Morgage PPI
    • #1
    • 30th Nov 17, 10:19 PM
    Morgage PPI 30th Nov 17 at 10:19 PM
    Hi, I was considering claiming on a morgage PPI I believe I was mis-sold but MSE seems to only mention bank accounts, loans etc but not morgages. Are morgage PPIs considered different to other PPIs? Is there advice somewhere else on this that I have missed! :/
    Thanks!
Page 1
    • Moneyineptitude
    • By Moneyineptitude 30th Nov 17, 10:46 PM
    • 18,902 Posts
    • 10,121 Thanks
    Moneyineptitude
    • #2
    • 30th Nov 17, 10:46 PM
    • #2
    • 30th Nov 17, 10:46 PM
    The complaint process is exactly the same for all PPI policies. MSE does mention mortgages too.
    • dunstonh
    • By dunstonh 30th Nov 17, 11:09 PM
    • 89,898 Posts
    • 56,572 Thanks
    dunstonh
    • #3
    • 30th Nov 17, 11:09 PM
    • #3
    • 30th Nov 17, 11:09 PM
    Are morgage PPIs considered different to other PPIs?
    MPPI is a form of PPI. It suffers less problems than loan and credit card PPI and is one of two types of PPI still sold today. The complaint uphold rate on MPPI is far lower than loan PPI.

    Is there advice somewhere else on this that I have missed! :/
    First thing to consider is whether you have grounds for complaint or not. There is nothing wrong with having MPPI. So, why do you think yours may be missold?
    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 an Independent Financial Adviser local to you.
    • anoif99
    • By anoif99 1st Dec 17, 7:52 AM
    • 7 Posts
    • 0 Thanks
    anoif99
    • #4
    • 1st Dec 17, 7:52 AM
    Morgage PPI
    • #4
    • 1st Dec 17, 7:52 AM
    Hi, Thanks for info.

    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.
    I'm still unclear why reclaiming success is lower than other PPIs if the rules are the same?
    Cheers
    • zx81
    • By zx81 1st Dec 17, 8:13 AM
    • 14,388 Posts
    • 15,181 Thanks
    zx81
    • #5
    • 1st Dec 17, 8:13 AM
    • #5
    • 1st Dec 17, 8:13 AM
    I'm still unclear why reclaiming success is lower than other PPIs if the rules are the same?
    Originally posted by anoif99
    Because whereas your sickness cover may have been appropriate for a £200 credit card bill, it may not have stretched to covering a 25 year mortgage, in the tens or hundreds of thousands of pounds.
    • anoif99
    • By anoif99 1st Dec 17, 9:21 AM
    • 7 Posts
    • 0 Thanks
    anoif99
    • #6
    • 1st Dec 17, 9:21 AM
    • #6
    • 1st Dec 17, 9:21 AM
    Hmmm, I think the ppi only covered my morgage repayments for the year tho. Not full repayment of the morgage.
    • Moneyineptitude
    • By Moneyineptitude 1st Dec 17, 11:03 AM
    • 18,902 Posts
    • 10,121 Thanks
    Moneyineptitude
    • #7
    • 1st Dec 17, 11:03 AM
    • #7
    • 1st Dec 17, 11:03 AM
    Hmmm, I think the ppi only covered my morgage repayments for the year tho. Not full repayment of the morgage.
    Originally posted by anoif99
    PPI is only ever designed to provide short term cover. You can't complain because it wouldn't have paid off your whole mortgage!
    • anoif99
    • By anoif99 1st Dec 17, 11:14 AM
    • 7 Posts
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    anoif99
    • #8
    • 1st Dec 17, 11:14 AM
    • #8
    • 1st Dec 17, 11:14 AM
    Sorry, i think i musunderstood, new to all of this! My thoughts are tho that my sick covered me for a year, any redundancy would have been high due to length of service so i didn't really need ppi? Does that make sense? Thoughts anyone?
    • Moneyineptitude
    • By Moneyineptitude 1st Dec 17, 11:16 AM
    • 18,902 Posts
    • 10,121 Thanks
    Moneyineptitude
    • #9
    • 1st Dec 17, 11:16 AM
    • #9
    • 1st Dec 17, 11:16 AM
    My thoughts are tho that my sick covered me for a year, any redundancy would have been high due to length of service so i didn't really need ppi?
    Originally posted by anoif99
    Redundancy is never guaranteed unless you work for the Police etc.

    Look for other complaint reasons...
    • anoif99
    • By anoif99 1st Dec 17, 11:16 AM
    • 7 Posts
    • 0 Thanks
    anoif99
    Haha, no i didn't mean that. I amnt complaining about that!
    • anoif99
    • By anoif99 1st Dec 17, 11:18 AM
    • 7 Posts
    • 0 Thanks
    anoif99
    I did have guaranteed redundancy....honest!
    • dunstonh
    • By dunstonh 1st Dec 17, 12:41 PM
    • 89,898 Posts
    • 56,572 Thanks
    dunstonh
    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
    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 an Independent Financial Adviser local to you.
    • anoif99
    • By anoif99 1st Dec 17, 1:06 PM
    • 7 Posts
    • 0 Thanks
    anoif99
    Thats great info, thanks for that. I did realise it paid out even if i got redundancy. In gov job so redundancy would be fine but cheers for help.
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