reclaiming mortgage income protection insurance

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
5 replies 1.8K views
grastaffgrastaff Forumite
102 Posts
Hi can anyone advise me.

I have been paying for an income protection insurance on my mortgage for a large number of years. Since 2000 I felt that I didn't need it as my husband was self employed then long term sick and if I had been off work through illness I would receive 6 months full pay then 6 months half pay.

We have extended our mortgage a couple of times and each time it was very strongly recommended that we need to take out the insurance to ensure the best chance of getting the mortgage advances despite my sick pay situation at work.

Can/should I re-claim this back?

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  • dunstonhdunstonh Forumite
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    I felt that I didn't need it as my husband was self employed then long term sick and if I had been off work through illness I would receive 6 months full pay then 6 months half pay.

    So your husband didnt have any sick pay which means he did need it.

    We have extended our mortgage a couple of times and each time it was very strongly recommended that we need to take out the insurance to ensure the best chance of getting the mortgage advances despite my sick pay situation at work.

    It is strongly recommended as you have a financial need. What evidence do you have that you were told you had to have it?
    Can/should I re-claim this back?

    You havent given any reason for mis-sale yet. What are the reasons and what can you prove?
    Who did you buy it through (mortgage adviser or bank - which bank)?
  • edited 29 November 2011 at 5:10PM
    grastaffgrastaff Forumite
    102 Posts
    edited 29 November 2011 at 5:10PM
    dunstonh wrote: »
    So your husband didnt have any sick pay which means he did need it.




    It is strongly recommended as you have a financial need. What evidence do you have that you were told you had to have it?

    The further advances since my husband's illness (which was cancer so no insurance company would touch him after) it has been in my name only and I did say at the time that I did not feel I needed it but whilst there was nothing in writing it was strongly intimated at the time that the loan being approved would be at risk if I did not have it.

    You havent given any reason for mis-sale yet. What are the reasons and what can you prove?
    Who did you buy it through (mortgage adviser or bank - which bank)?

    As above I probably cannot prove what was said at the time (same as the banks mis-selling the loan and credit card PPI which I don't believe needed proof). I brought it through a financial adviser who was attached to the building society (Cheshire Building Society)
  • dunstonhdunstonh Forumite
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    Most of the complaints getting upheld are bought under a non-advice process. Those bought via an adviser have a much better audit trail as they will have a factfind, needs analysis and report issued.

    Basically, you are going to need a technical failing to exist (i.e. advice can be seen to be bad or it was set up wrong). A verbal "told you had to have it" wont work.
    same as the banks mis-selling the loan and credit card PPI which I don't believe needed proof

    Very few complaints get upheld on that basis though. Typically loans nearly always get upheld because they are single premium and added to debt and charged interest rather than being monthly with no interest charge. Credit card successes are a little less than loans but their biggest area is a failure of the firm to show an audit trail that shows they got the required information.

    Whilst you dont need to supply proof on a complaint, if they have no evidence on file that the adviser said that then they can reject that part of the complaint. You can bet your life there will be nothing on file saying that. Hence why you need another reason.
  • Strangely I have had a statement from the BS this morning outlining may payment schedule and statement saying that the government have increased the insurance premium tax from 5 to 6% and this has put up my premium.

    Is this right?
  • dunstonhdunstonh Forumite
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    grastaff wrote: »
    Strangely I have had a statement from the BS this morning outlining may payment schedule and statement saying that the government have increased the insurance premium tax from 5 to 6% and this has put up my premium.

    Is this right?

    That is correct. It increased to 6% last January and is applicable from renewal (these plans have an annual point so the increase would apply typically on anniversary of the start date)
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