Legacy PPI still being paid on old Mortgage

bjcritc

Hello, I am hoping you can help me clarify if a PPI is on a mortgage or the person?
I took a Halifax Mortgage & PPI (clever sales\easily led first time buyer) on a first time buyer mortgage in 2001. When I moved in 2007, i paid up the mortgage (from the sale of the property) and moved to another provider - declining the proposed PPI - but i did take the life and Critical illness cover.
However, 5 years on i have found that i am still paying the PPI on the original Halifax mortgage - including CI and Life insurance. Is this acceptable? My understanding was that the PPI was related to the Halifax mortgage, is this true?

dunstonh

I took a Halifax Mortgage & PPI (clever sales\easily led first time buyer) on a first time buyer mortgage in 2001.

It is also best advice. Nothing wrong with insurance as you would find out if you had to make a claim.

However, 5 years on i have found that i am still paying the PPI on the original Halifax mortgage - including CI and Life insurance. Is this acceptable?

It is acceptable and nothing wrong from halifax's point of view. Many people stick with the same insurance when they move lenders. If any fault is involved it is with the new provider who should have checked what you already had and then told you to either keep it or cancel it if you move to their insurances.

So, if you want to make a complaint, I would suggest it is to the new mortgage adviser you used and not the Halifax. However, check your paperwork as they may well have told you to cancel the old insurances in writing and you didnt act upon it. It is also possible that if the new adviser was a tied sales rep and not an IFA, that they were not authorised to tell you to cancel the old one (tied agents are not allowed to give advice on other providers products, IFAs are). So, its possible that there is quite a bit of failing on the new adviser's part.

bjcritc

Thanks dunstonh, much appreciated. Disappointing (for me), but appreciated and worth knowing all the same.

FYI, the second mortgage was arranged by an IFA (of the estate agent), and (as i recall), there was no mention of cancellation of the legacy policies. I will check the documentation.

Thanks again.

magpiecottage

bjcritc wrote: »

FYI, the second mortgage was arranged by an IFA (of the estate agent), and (as i recall)

An estate agent is not necessarily an IFA - even if they offer whole of market mortgage advice.

dunstonh

magpiecottage wrote: »

An estate agent is not necessarily an IFA - even if they offer whole of market mortgage advice.

Given the higher costs involved in being an IFA compared to a mortgage adviser, it would be a complete waste of money for someone to pay for IFA authorisations and compliance when their primary role is mortgages. They would be better of being independent mortgage advisers or whole of market mortgage advisers (the latter often being tied agents of an insurer whilst being whole of market on mortgages).

roonaldo

bjcritc wrote: »

FYI, the second mortgage was arranged by an IFA (of the estate agent), and (as i recall), there was no mention of cancellation of the legacy policies. I will check the documentation.

thing is, its a monthly policy and they all can be cancelled at anytime, even if you just cancel the direct debit.

insurance for a mortgage is good advice.