Mortgage decreasing term assurance cost

snoop12

Hope somone can help. I have a dispute with my bank because 1) I was convinced by them I had to have mortgage protection and 2) the cost. The cost was £85 a month to cover an £80,000 mortgage. I took it out 7 years ago when my wife was 49 and a smoker and I was 51. It was to last 18 years. Could anyone tell me if this expensive or I am I just out of touch. It is hard to compare prices from past.

betmunch

The cost is just the cost I'm afraid you have no complaint with the bank for the cost of it.
However, being led to believe that you would not get the mortgage without it is a clear mis-sale for me, unless its a condition of the offer (which I have seen once before, but shouldnt apply to you)

With regards to whether it is expensive or not, its too hard to say based on prices 7 years ago, however if it was the banks own policy, it would likely loaded to earn the bank more commission, so likely was over prices but you cant know for sure now

dunstonh

There are answers on your duplicate thread in the insurance section. Its best to post just once otherwise you get cross conversations.

snoop12

New to this. I thought I was doing it wrong and wasn't getting through so I ended up sending the same message over and over. Apologies.

dimbo61

Have you looked at how much it would cost you now ?
If its simple life assurance and you want the same level of cover with the same company why not give cavendish online or moneyworld a call
read the article from Martin about life insurance
See what figures they come up with
I have no idea if you would have any joy with Mis selling BUT 6 years ago the nice lady at the bank told me I had to have life assurance with XXXX company so I went to a online/telephone broker and took out the life assurance at 2/3 rd the price she wanted me to pay.
This will over 22 years save me about £5000

dpac123

It sounds like the bank just wanted to make some more money out of you. Mortgage protection policies are extremely important, but as far as I am aware, they are not compulsory by law. I would certainly suggest looking around to see if you can get the same cover cheaper or better cover for the same price. Certainly being a non-smoker would reduce your premiums considerably.

You may want to consider contacting an independent broker to discuss what cover you need and how much. Remember that a bank can only show you their own, often over-priced products, whereas an independent broker can look across the whole market. Send me a PM if you would like a recommendation or if you prefer an online option, look at London and Cover.

Wutang_2

dpac123 wrote: »

It sounds like the bank just wanted to make some more money out of you. Mortgage protection policies are extremely important, but as far as I am aware, they are not compulsory by law. I would certainly suggest looking around to see if you can get the same cover cheaper or better cover for the same price. Certainly being a non-smoker would reduce your premiums considerably.

You may want to consider contacting an independent broker to discuss what cover you need and how much. Remember that a bank can only show you their own, often over-priced products, whereas an independent broker can look across the whole market. Send me a PM if you would like a recommendation or if you prefer an online option, look at London and Cover.

Yeah PM me too for a bit of business, whatever he offers - I will better it. And I can review all your other insurances. And give you cashback. And come round and brush your hair. CHOOSE ME.

dunstonh

but as far as I am aware, they are not compulsory by law.

The lender is allowed to insist on insurance. However, you only typically see it on business loans.