Cancelled Mortgage Insurance

Jeff..Help

Hi,
I have a weekend cottage, 18 months age I took out a mortgage for building improvements. I visited the thisismoney.com website they put a financial company called Crystal Clear Financial Solution (FSA reg.) in touch with me, arranged the mortgage and requested a mortgage protection Ins. they gave me 2 options I selected a company called Paymentshield.
In July, I was made redundant registered my claim with Paymentshield, in October they notify me they will not accept my claim as it is not my permanent place of residence. I contacted CC they agreed I had made it quite clear it was not my permanent home, they would contact Paymentshield and sort it out.
This week I received a letter from both companies informing me the application was accepted in error and should not have passed the underwriting stage and they will refund the my payments less the administration of £1.05 for each monthly payment.
I feel I had done all the right things, approved financial advice which I paid for, I now find the financial advice was floored the Insurance company was negligent when accepting my policy.
What are my options, I want the mortgage paid.
I paid for the financial advice that forms a contract the information passed to me from them was floored, can I claim on one of the companies for failure to honour the contract which they accepted from me.

dunstonh

I feel I had done all the right things, approved financial advice which I paid for

Was it advice or did you choose? This is important because if its a advice they have to make sure the product is suitable. If its you making a choice then they do not have to.

If it was advice then you should raise a complaint to the advising firm as it is they who have the error not paymentshield. However, before you do that, you should check the copy of the application to see if it mentions primary residence or not. If it does and it correctly says it isnt then your complaint isnt against the intermediary but paymentshield.

I paid for the financial advice that forms a contract the information passed to me from them was floored

The spelling is flawed BTW.

can I claim on one of the companies for failure to honour the contract which they accepted from me.

It depends on who is responsible for the error. If you paid a fee for advice then your first point of call should be with the advising firm. No need to raise a complaint yet though. Check your application copy. Speak with them, see what they say and what they suggest.