total morgage protection question

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
3 replies 746 views
chipsnpeaschipsnpeas Forumite
2 Posts
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
hi there i have read with interest the information about missold insurance on loans and credit cards, i was wondering if this would apply to morgage protection insurance...
i got a hbos morgage 4 and a half years and was told at the time that i had to take their total morgage protection plan(tmpp). i was first time buyer and believed everything i was advised though i did mention i had life cover through my work and also have full pay for first 6month of sickness.
the advisor said to get the morgage amount which i had asked i would HAVE to take the tmpp so i signed up and have been paying around £75 per month since.
i am now going to cancel the policy as i believe i don't and never have needed it.... does anyone know if i can reclaim the amount which i have paid and if i can how to do so? thank you

Replies

  • di3004di3004 Forumite
    42.6K Posts
    chipsnpeas wrote: »
    hi there i have read with interest the information about missold insurance on loans and credit cards, i was wondering if this would apply to morgage protection insurance...
    i got a hbos morgage 4 and a half years and was told at the time that i had to take their total morgage protection plan(tmpp). i was first time buyer and believed everything i was advised though i did mention i had life cover through my work and also have full pay for first 6month of sickness.
    the advisor said to get the morgage amount which i had asked i would HAVE to take the tmpp so i signed up and have been paying around £75 per month since.
    i am now going to cancel the policy as i believe i don't and never have needed it.... does anyone know if i can reclaim the amount which i have paid and if i can how to do so? thank you


    Hello and welcome.;)

    Will leave this one for Dunstonh to deal with, who has great knowledge in this field, with also being a Financial Advisor.
    I'm sure Dunstonh will help and will be along soon, good luck.
    The one and only "Dizzy Di" :D
  • dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    i was wondering if this would apply to morgage protection insurance...

    Mis-selling applies to any regulated financial services product potentially.
    i did mention i had life cover through my work and also have full pay for first 6month of sickness.

    Death in service doesnt matter. Its paid under trust and there is no guarantee the money will go where intended and companies are closing these down all the time. It is quite acceptable and normal not to include death in service in the protection shortfall for mortgages (although you would expect it to be included for family protection).

    You may have 6 months full pay but what about after that? Does your employer pay unemployment cover for 12 months? So, there is a short overlap but not much.

    A PHI policy would have been better but Halifax are tied agents, not IFAs and their mortgage advisers havent got a PHI policy. Tied agents have to recommend the best policy in their range. Not the best policy overall.
    the advisor said to get the morgage amount which i had asked i would HAVE to take the tmpp so i signed up and have been paying around £75 per month since.

    If that happened, then that is a mis-sale as it is not true that you have to have it. However, it may end up being your word against theirs. In those cases it will usually come down to the quality of the documentation held by the Halifax. A well documented file would have your complaint thrown out. A badly documented file would favour you.

    Off at a tangent now but to explain documentation further, some stats were produced on endowment complaints that showed out of an average 1000 complaints, 25 endowments were actually mis-sold. However, another 225 resulted in redress paid. Not because they were deemed mis-sold but because the client files could not support the sale as paperwork was missing or not documented to the required level. Claims companies soon learned this and it is that which resulted in so many endowment complaints being paid out. It is also the same reason why so many PPI claims are being paid out on loans.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • thanks for the reply dunstonh u explained alot
    i'm going to get a family policy elsewhere which will cover the morgage,

    could i use one of the template letters to try to claim back the missold insurance? even if it doesn't come to anything i'm always of the opinion that if u don't ask u don't get :)
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