Mortgage Protection Insuance

flands_2

I've just woken up and started to question what I'm paying for what. Even discovered I've been paying loan protector on my mortgage for nearly ten years, haven't missed a payment. Can anyone advise me on if I can get any of this back? I guess it's lost money!

After advice from one of the forum, thanks ejones999, I've looked further and have found that I can save a third through an internet site but they only operate through the internet. How do you check if a site is reputable and are not going to take the money and run?

Still undecided if this is the way to go or to look at other ways to cover the mortgage. Advice on salary Protection insurance would be interesting.

regularsaver1

I doubt you could get money back on old insurances - unless you can prove mis-selling.

It may be worth seeing an IFA for different insurances to protect your income

nemo183

flands wrote:

After advice from one of the forum, thanks ejones999, I've looked further and have found that I can save a third through an internet site but they only operate through the internet. How do you check if a site is reputable and are not going to take the money and run?

Whilst I can understand your concern about taking a policy with an internet only site, perhaps it would be equally important to check that you would be eligible to claim if the worst came to the worst.

It seems to me that this kind of insurance suffers from two drawbacks - firstly, the charges are absurdly expensive when related to the risk. Secondly, and just to add insult to injury, many polices contain a whole host of exclusions that make claiming a joke.

On the positive side at least with a mortgage you probably have the option of cancelling the "insurance" aspect. Were we talking about a cash loan, the insurance element would have been calculated for the entire duration of the loan as a single cash amount, and then added to the loan amount, so that it could then attract interest, and then charged back to you monthly. So, not only do you pay interest on the insurance, but because it becomes part of the loan, you can't cancel it.

Whilst most of us mortals find the above almost unbelieveable, but having been caught once won't ever let it happen again, if you keep watching this thread for a few days you'll find that there are enough people that earn a living from these obscene fees and who also read the postings who will attempt to justify their livings in an amusing effort to present the other point of view.

The sad thing is that they honestly believe what they say - i.e. having worked for a lender for so many years, they just accept that these massive margins are part of normal business.

In the same way that the £25 charge from the bank to tell you that you're overdrawn has proved to be an example of usury, it can't be long before this rip-off is finally nailed.