Mortgage Protection Insurance Discussion

kimmarie

Hi
I'd really appreciate some advice on the best way to protect myself in the event of redundancy.
Having recently become single I'm trying to plan for all possible worst case scenarios. I'm seriously considering taking out some kind of protection to cover my mortgage. I only want to cover redundnacy/unemployment as I get medical cover through work. I've tried to weigh up the pro's and cons and work out if I need this.
For example if I were to be made redundant I would probably be able to rent out my own room in addition to another one in the house to covr my payments and luckily I work in an organisation where there may be good opportunities and hopefully I'd find something else.
On the negative side there is no such thing as a safe bet and whilst there has been no indication of my job being at risk at all I feel that being on my own it would be sensible to plan for the worst.
Having done a quick comparison on moneysupermarket there is a quote that would be enough to pay my mortgage for £20ish which feels like a small price to pay for piece of mind.
I'd really appreciate some thoughts on what I should really consider before I go ahead. For example Are British Insurance reputable? Also what is an "unemployment buffer period". Would having a lodger affect any payment made under the policy?

I know that I could keep myself going for 3 months should the worst happen but really just want some comfort and the feeling that I am doing the right thing to look after myself rather than hoping someone will bail me out.

Any thuoghts would be really appreciated as I don't have anyone else I can ask.

Thanks again.

highguyuk

Really disappointing the article is now 5 years old.

barb13

Hi. Don't know if I'm on the right forum but here goes. I bought my house nearly 14 years ago and took ouy mortgage payment protection insurance. Looking back, I believe I was mis-sold it. I did claim on it once when I was off work sick for 6 months. Does that mean I can't claim for it being mis-sold.

dunstonh

barb13 wrote: »

Hi. Don't know if I'm on the right forum but here goes. I bought my house nearly 14 years ago and took ouy mortgage payment protection insurance. Looking back, I believe I was mis-sold it. I did claim on it once when I was off work sick for 6 months. Does that mean I can't claim for it being mis-sold.

Lets look at your issues....

1 - 14 years was 9 years before regulation. (can be important if you used a broker/adviser as most of those dont have to consider pre-regulation sales

2 - The FOS and the firms reject most MPPI complaints. It doesnt suffer many of the issues that loan and credit card PPI has.

3 - you claimed on the policy. So, this would prevent you complaining you didnt know about it or you were not eligible. Regular premium MPPI is set up correctly (standalone direct debit) so suffers no set up problems. So, it is hard to know what you would be complaining about.


Maybe if you told us what your reason for complaint is and what evidence you have to support it, we could help understand if you have a good reason or not.

barb13

Hi. Don't know if I'm on the right forum but here goes. I bought my house nearly 14 years ago and took ouy mortgage payment protection insurance. Looking back, I believe I was mis-sold it. I did claim on it once when I was off work sick for 6 months. Does that mean I can't claim for it being mis-sold. Sorry if this is a silly question. :A

kingstreet

What made it mis-sold?

amnblog

She only got to claim once!

Oyster_mama

Hi,
I am new to the forum and wanted to ask for advice on the policy above. I understand that it is not ppi but I believe I was misold this policy as outlined below.

I took out the policy in 2003 on a mortgage of £40,000 on a flat worth £100,000. I was a student at the time and had no income aside from teaching jobs that paid irregularly but my payments were very low and I was living with my partner in a house he owned so my outgoings were low. I was told I needed the policy otherwise the mortgage would be refused despite the £60,000 deposit.

I paid off the mortgage in 2005 but continued to make payments unaware until April 2014 that there was no point to them as hsbc in the meantime had changed the policy number and I just didn't check. The payments were for £13.75 a month and the policy would have run out in 2020. I have since cancelled it.

Any advice on whether I have a right to complain would be appreciated.

Thanks

rocketduck

I'm not needing advice as such more answers to some questions.

I'm currently paying Payment Shield for my MPPI and when I did some quotes online, I found one of the cheapest to be First Call Payment Protection co.uk

Does anyone know if this company is genuine, or anyone used them before? Having MPPI, does it need to be underwritten by an Insurer (like it does when you buy car/home insurance) and if it does, how would I find out who is the underwriter?

I do want to move to a cheaper provider but don't want to move to a fake company, only to find out in the event of a claim they don't exist...

Many Thanks

dunstonh

'm currently paying Payment Shield for my MPPI and when I did some quotes online, I found one of the cheapest to be First Call Payment Protection co.uk

You dont buy paymentshield on price. You buy them on quality. They have one of the best reputations for paying out on claims and very few restrictions.

Of course, if you want to move to a budget company with more restrictions and a lesser reputation then that is fine. However, it may be better to compare quality and not just price.