PPI on a Mortgage

nco41

Can anybody tell me if you can claim back PPI charges on a Mortgage?
My husband and i took out a Mortgage in 1996 and were bamboozeled into taking out a PPI without knowing what we were signing up to.
We have never claimed anything from itbut paid a fortune into it. We no longer have this Mortgage.
Any info would be appreciated.
Thanks
N Xx

dunstonh

Can anybody tell me if you can claim back PPI charges on a Mortgage?

You dont pay charges on PPI. You pay an insurance premium.

In theory you can complain about whatever you like. Even the colour of the carpet in the office of the broker that sold it to.

my husband and i took out a Mortgage in 1996 and were bamboozeled into taking out a PPI without knowing what we were signing up to.

Fair enough but no grounds for mis-sale there as there would have been enough documentary information available to read if you wanted to.

We have never claimed anything from itbut paid a fortune into it.

Thats how insurance works. If you claim it pays out, if you dont claim it doesnt. If everybody claimed and got paid out then insurance would not work. Failure to have a claim is not grounds for complaint.

You could have been mis-sold (although regulation only came in on these in 2005). However, you have not given a reason so far. So, what reasons do you think it was mis-sold?

nco41

Thank for your reply dunstonh.
My cause for questioning the PPI is that we were told we had to have it and that we could not go else where. Basically the whole Morgtage offer rested on us taking out the PPI with the Mortgage so we went along with it.
I did not know if mis-sold PPI with a mortage is the same as mis-sold PPI with a loan?
N

dunstonh

My cause for questioning the PPI is that we were told we had to have it and that we could not go else where.

Being told you have to have it is not allowed. Although that is only a more recent ruling. Back in the 90s and earlier banks were allowed to insist on insurance with mortgage deals and insist on insurances. Even today banks can do this to a limited extent and there are currently mortgage deals that offer greater discounts if you buy the insurances if them.

There is no requirement for them to tell you that you could buy it elsewhere. Indeed, if tied agents told you that they could actually be in breach of rules. This reason seems to be an internet myth.

Problems you have is that it is 1996. What evidence do you have to support your claims? Why has it taken you so long to complain? (you may even be timebarred from complaint). Was the original requirement to have PPI in conjunction with the purchase of a specific deal?

Unlike loan and credit card PPI, it is a bit harder to claim mis-sale with MPPI. Still possible but the reasons are different and often the evidence does exist with MPPI which it doesnt with loan and credit card. You may have a good reason but I suspect that a complaint using the reasons you have listed would fail due to lack of evidence and timescale. I could be wrong but just looking at it purely from what you have said so far.

nco41

I was only recently told that maybe Mortgage PPI may be re claimable so I thought I would ask on here to see if it was correct or not.
Thanks for your help.
I wonder if anybody elase has an opinion .
Regards
N

dunstonh

I was only recently told that maybe Mortgage PPI may be re claimable so I thought I would ask on here to see if it was correct or not.

Any financial product can be mis-sold. At the moment PPI is flavour of the month with claims companies mainly due to certain types of PPI being heavily mis-sold. MPPI being a type of PPI has been caught up in it but is far less affected than the other types. Generally, if its single premium MPPI, then its nearly always a mis-sale. If its monthly payment MPPI and you were eligible for cover at that start and had a financial need then its not a mis-sale.

nco41

I thought that paying a monthy PPI on top of you loan/debt was the root of the problem. We paid for two MPPI every month as we were told we could not have our mortgage unless we took it out.That now appears not to be true hense my question.
Im very confused
N

dunstonh

I thought that paying a monthy PPI on top of you loan/debt was the root of the problem.

If the cost of the MPPI was added to your debts and charged interest on then that is not considered fair when it should come from your bank account. Hence why single premium MPPI nearly always gets classed as a mis-sale (although courts dont class it as mis-sale - court case last year confirmed that). However, some building societies do collect the MPPI premium with the mortgage but the MPPI is not added to the mortgage balance unless you fail to make payment by direct debit. That would be allowed as its a failure to make payment and borrowing the money to pay the premium (which can be stopped by you at any time).

nco41

Ok. Thanks for that Dunstohn.

mysuni

I found out today that i've been paying for MPPI that I didn't know I had since 1997 for a mortgage that I haven't had for 2 years!