Halve Your Mortgage Payment Protection Costs Article Discussion Area

patrick0

Has anyone had problems with these people?

I signed up for a policy on their website and they're happily debiting my account each month. I received no policy documents in the mail (a colleague who signed up at the same time received the documents shortly after).

I have called them 4 times now, a week apart each time. They always apologise but the documents still don't show up.

Is there a better way to complain? I'm getting nowhere with their customer services dept.

It makes me wonder what they'll be like if I ever have to claim.

fluff76

I would like to investigate protecting my mortgage repayments considering the current economic climate.

Although my company (which has over 3000 staff) has made minor redundancies, My job is safe for the moment and there has been no indication that it would effect me, however I would like to safeguard in any event for peace of mind.

I would like to know what criteria I would be able to arrange cover and what are the normal t&c's e.g do I have to wait 12 months before claiming etc etc


Thanks

lottie990

My boyfriend and I are thinking of buying our first flat on a shared ownership scheme. We would purchase 30% of the property and pay rent on the remaining 70%. I understand that MPPI covers your mortgage payments and other related costs like building's insurance, but what about the rent payments? Does anyone know if these are generally included and if not are there insurance providers tailoring to this kind of property purchase?

Thanks in advance for any replies.

robin_banks

Dont do it, shared ownership is an effing 'mare

bg08

A quick question as new to this site!

I am looking for MPPI due to the current economic climate. My position, which I have been in for 7 years, is one based on commission and results - thus my company doesn't make redundancies they tend to terminate employment or you have to resign. Would one still be covered by MPPI in this instance?

HanSpan

I'm wondering if I should cancel or switch my MPPI, any advice gratefully received.
My partner and I (unmarried) pay approx 450 a month Mortgage and have cover of 477 with Pinnacle (was Standard Life) costing £22.41 a month with 60 days deferred, 0 days elimination period (whatever that means) and 12 months max benefits. Like many others I took this out at the point we took the mortgage without thinking about it too much and feel I really should work out if this is worth what we are paying.

I work in the public sector so get good sickness cover (6 months full pay, next 6 half pay) and have an extremely low likelihood of redundancy.
My partner works in the private sector and would get half my sickness benefit (3 and 3 months), also redundancy is more likely and he'd get somewhere between minimum and 1 year salary.
I'm actually not sure how this would work - if one of us was off long term sick would the whole amount get paid or just half? And would it pay out in the first however many months (3/6) even though we would still be getting paid? I have read the whole of the policy document and its not there!

So I wonder should we have separate policies as we have such different circumstances? Or should I just cancel the whole thing and go for something else?

dunstonh

I work in the public sector so get good sickness cover (6 months full pay, next 6 half pay) and have an extremely low likelihood of redundancy.

So permanent health insurance would be a better option for you (with a split 6 month/12 month deferment).

My partner works in the private sector and would get half my sickness benefit (3 and 3 months), also redundancy is more likely and he'd get somewhere between minimum and 1 year salary.

Minimum is pittance. So somewhere between that and 1 year is a very wide margin. You need to find out what. For him a PHI with a 3 month/6 month split could be best with standalone unemployment cover.

'm actually not sure how this would work - if one of us was off long term sick would the whole amount get paid or just half?

Depends on the plan itself and how its made up. It could be per person or 50% of the amount. These are decisions you make when you take it out.

And would it pay out in the first however many months (3/6) even though we would still be getting paid? I have read the whole of the policy document and its not there!

Any amount in excess of the mortgage would be reduced but the mortgage payment would be protected whilst you are on full pay. Although you are paying for insurance you dont need. Thats daft because there are almost certainly areas that you have financial needs which you are not covering.

HanSpan

dunstonh wrote: »

So permanent health insurance would be a better option for you (with a split 6 month/12 month deferment)..

I suspected, from your previous posts, this might be the best thing for me.

dunstonh wrote:

Minimum is pittance. So somewhere between that and 1 year is a very wide margin. You need to find out what. For him a PHI with a 3 month/6 month split could be best with standalone unemployment cover..

Unfortunately, with his company, over the years, the redundancy payments seem to depend on how the wind blows. I suppose therefore its best to plan for the worst.

dunstonh wrote:

Depends on the plan itself and how its made up. It could be per person or 50% of the amount. These are decisions you make when you take it out.

I've emailed them, as the phoneline gets no answer. If its per person I think its a pretty good deal.

dunstonh wrote:

Any amount in excess of the mortgage would be reduced but the mortgage payment would be protected whilst you are on full pay.

So the 420 (mortgage) would be paid and the remaining (477-420) would be proportional?

dunstonh wrote:

Although you are paying for insurance you dont need.

That's what I thought - although if it is still paid, it would give us (and anyone else in the same situation) the ability to save up what we would have spent on the mortgage over those first few months to make a cushion for later. But this might not be the best way?

dunstonh wrote:

Thats daft because there are almost certainly areas that you have financial needs which you are not covering.

We both have work payout on death schemes that give 2.5 times annual salary or more - which would cover our outstanding part of the mortgage. Neither of us have dependants so I suspect what we need most is something to cover the mortgage for any period during which we were unable to work and our employers stopped paying. Which is sort of why I took out MPPI but clearly wth absolutely no thought!
H

sambanini

Hi All, Newbie here!

My partner recently tried to make a claim on our PPI when he was made unemployed, but was told that the reasons for losing his job were not "good enough" to enable him to claim.

Maybe I was naive when our mortgage advisor told us about/"sold" us the PPI, but I feel that we were not advised that the policy would only actually cover redundancy rather than general unemployment. We were also not advised that any claim would only be paid out for 12 months.

Do you think I have a valid case for writing to the PPI provider and asking for a refund on my payments, or am I likely to be wasting my time?

dunstonh

My partner recently tried to make a claim on our PPI when he was made unemployed, but was told that the reasons for losing his job were not "good enough" to enable him to claim.

Redundancy cover is quite clear in where it wont and will pay out. You would not get a response " not good enough". You would get a clear reason why it would not pay out. Such as he was sacked or he left of his own accord.

Maybe I was naive when our mortgage advisor told us about/"sold" us the PPI, but I feel that we were not advised that the policy would only actually cover redundancy rather than general unemployment.

You are being naive on this one I am afraid.

We were also not advised that any claim would only be paid out for 12 months.

The illustration issued would state 12 months, the policy schedule would state 12 months, the statement of demands and needs/suitability report would state 12 months. The product itself sas a generic norm of 12 months (only a minority go to 24 months and you pay extra for that).

do you think I have a valid case for writing to the PPI provider and asking for a refund on my payments

none whatsoever. Firstly the PPI provider didnt recommend you take out their policy. So, they have liability to you whatsoever. The adviser has the liability for the product recommendation and if you can show it was mis-sold then you have a case. However, nothing you have said suggests mis-sale. PPI sales by financial advisers and mortgage advisers doesnt seem to be much at issue as they have documentation to support the recommendation. Its the sales by non financial/mortgage advisers where there is a lot more success on claiming money back.