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Advice please! Was I mis sold PPI Mortgage protection?

Lilyrhosyn
Lilyrhosyn Posts: 2 Newbie
edited 8 December 2011 at 11:48PM in Reclaim PPI & other insurance
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.

Comments

  • dunstonh
    dunstonh Posts: 119,887 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • 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
    kforshaw Posts: 395 Forumite
    Part of the Furniture Combo Breaker
    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!
    2 Tickets to Blackrock Masters Tennis:j
  • dunstonh
    dunstonh Posts: 119,887 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 7 December 2011 at 9:22PM
    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.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • kforshaw
    kforshaw Posts: 395 Forumite
    Part of the Furniture Combo Breaker
    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 :D
    2 Tickets to Blackrock Masters Tennis:j

  • Certainly a case of mis-spelling by the teacher!:rotfl:
    Thanks for that. Spelling mistake corrected. :)
  • amersall
    amersall Posts: 17,037 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    :rotfl:Detention for you :D
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