Mis-sold house insurance?

mayah2204

Hi there, just wondered if anyone could advise me. I took out buildings and contents insurance when i got my mortgage with Halifax. What I've just found out when changing my mortgage deal is that the last 2 years of house insurance worth about £630 has been added onto my mortgage loan!!! I'm fuming as i thought the monthly premium was included in the monthly mortgage payment. I was never informed that it would be added onto my mortgage loan and if I was I would never ever have agreed to home insurance from Halifax!

Can anyone advise please

dunstonh

It used to be common place to have your home insurance paid with the mortgage in that way. Halifax were one of the most common ones that did it.

In effect, the monthly payment is taken with the mortgage payment but the annual single premium is added to the mortgage account. As many monthly premium plans charge interest within them at rates into the 20% APR equivalent, having it on a cheap mortgage interest rate is not necessarily a bad thing.

TEDDYRUKSPIN

dunstonh wrote: »

It used to be common place to have your home insurance paid with the mortgage in that way. Halifax were one of the most common ones that did it.

In effect, the monthly payment is taken with the mortgage payment but the annual single premium is added to the mortgage account.

True but still wrong! I had this done to me years and years back. Not being funny years back. It was'nt explained to me back then. So naive and not a FA then either.

You can still cancel this insurance but you will only obtain a small amount of money back. Depending on your paperwork, you are in the right to make a complaint. Letter in writing.

It cheeses me right off that this happens. Abbey, now satander, do this also. They are cheeky.

Why do I hate it? I had a 65 years old woman come in once and although from another lender, wanted to know why she owed £600, even though her mortgage had finished. Guess what? Mortgage home insurance from abbey. Abbey demanded the money there and then. She could extend the mortgage and only option was a personal loan. So who is ripping off who? Interest is added and the end of the day, she still had to pay this huge amount off.

dunstonh

Dont get me wrong. I'm not saying its ideal. Just saying that is was commonplace years ago and still possible to see this happening.

McKneff

I dont understand why youre fuming, you will have signed for it at the beginning, you will have had mortgage statements.

You say you would never have agreed, well you did agree when you signed agreeing to it.

I really dont see how you think you have been missold it.

Youve had the insurance cover. Just shop around when its due again.