Advice please! Was I mis sold PPI Mortgage protection?

Lilyrhosyn

Hello, I am a teacher who was sold a PPI by the mortgage company when I took out my mortgage 7 years ago (mortgage repayment is 1/8 of my monthly take home pay). I am still paying £11.00 a month for PPI cover. Someone recently told me that as I receive 6 months full pay and 6 months half pay from my employer, if I am ill I would not be able to claim on the PPI policy? Does anyone know if this is correct? Would this be a case of mis-selling by my mortgage provider? I would be grateful for any advice. Thanks.

dunstonh

Someone recently told me that as I receive 6 months full pay and 6 months half pay from my employer, if I am ill I would not be able to claim on the PPI policy?

If the MPPI pays direct to the mortgage then you can claim and get paid out. If the MPPI pays direct to you in your account first then it would not pay out for 6 months and only a limited amount for the next 6 months. A redundancy claim is not affected by it.

Would this be a case of mis-selling by my morgage provider?

It is not the best product for you needs given the overlap. So, yes, you have a valid reason for complaint

magpiecottage

Lilyrhosyn wrote: »

I am a teacher

the morgage company

I took out my morgage 7 years ago

morgage repayment is 1/8 of my monthly take home pay

Would this be a case of mis-selling by my morgage provider?

Certainly a case of mis-spelling by the teacher!:rotfl:

kforshaw

Hmm....how would this work for a joint mortgage.

I pay £14.32 ish for mine, I would get full pay for 6 months then 1/2 pay for the following 6 months.
However, my partner, when we applied would have gone straight onto SSP after the week self cert etc

I have to say, as savvy as I thought I was, I never even considered mortgage PPI miselling - I always assumed it was for loans/ credit cards.

Doh!

dunstonh

I have to say, as savvy as I thought I was, I never even considered mortgage PPI miselling - I always assumed it was for loans/ credit cards.

That is because mortgage PPI has a much lower failure rate. Still not as low as it could be but its one of the easier areas to work out if you were mis-sold or not. Most common reason is single premium. However, financial need and eligibility issues still apply. If its monthly premium, you have a need for it (i.e. no or little sickness benefits) and you are eligible for cover then the complaint should be rejected.

I pay £14.32 ish for mine, I would get full pay for 6 months then 1/2 pay for the following 6 months.
However, my partner, when we applied would have gone straight onto SSP after the week self cert etc

Depends on how the MPPI is set up. If its set up as joint 0/100 (or single insured on your partner) then it seems fine. If an amount is allocated to you then you dont have a financial need for it. So, it is part mis-sold.

kforshaw

I might have to drag my papers out on this one.
I vaguely remember (8 years ago now) that if one of us had got made redundant/ of sick etc 50% of the mortgage would be dealt with.

But thanks for your reply

Lilyrhosyn

Certainly a case of mis-spelling by the teacher!:rotfl:
Thanks for that. Spelling mistake corrected.

amersall

:rotfl:Detention for you