Mortgage Life Protection Insurance (Not PPI)

Janowen

When I took out a mortgage a few years ago I was told by the bank that a life insurance policy must be taken out an assigned to the mortgage. With the misselling that surrounds the PPI insurance policies, I am wondering whether this also was legal and whether it can be reclaimed?

magpiecottage

Afraid not.

Lenders are entitled to insist on this as security for their loan although few do so nowadays.

Senior_Paper_Monitor

Did they insist you took it from them (in which cased they are probably out of order) or simply demand you obtained it (in which case they are almost certainly not out of order - as magpiecottage indicates)

opinions4u

Are you immortal?

Who would lose out financially if you died?

Janowen

Thanks for the replies. I'm not immortal but have no dependents. Therefore if I died before the mortgage was repaid the bank would take the property.

No, they didn't insist I took insurance from them, just that I had it in situ.

koexelek

opinions4u wrote: »

Are you immortal?

Who would lose out financially if you died?

We are all immortal..... but only for a limited time

dunstonh

It used to be complusary. The fact you mention it had to be assigned to them suggests yoiu are talking about a period when it was. So, in that case you cant see any wrong doing here if it was a condition of the mortgage.

PPI has issues as many people were told it was compulsary when it wasnt. Had it actually been compulsary, then they wouldnt have this complaints issue.

Janowen

dunstonh wrote: »

It used to be complusary. The fact you mention it had to be assigned to them suggests yoiu are talking about a period when it was. So, in that case you cant see any wrong doing here if it was a condition of the mortgage.

PPI has issues as many people were told it was compulsary when it wasnt. Had it actually been compulsary, then they wouldnt have this complaints issue.

Ok, fair enough. Thanks.