Can I claim PPI on mortgage?

Burden007

I have finally decided to make a claim for my mortgage PPI.
It is nearly 20 years I have been paying the premium and as this payment was simply rolled into my mortgage payment I think I have a case.
The article talks about getting your payments back +8% interest.
Any idea how this is calculated?
Having got a calculator out the difference between payments plus 8% and each years payment plus 8% for each year is massively different!

I have been redirected to this forum from the main PPI forum as the person on that forum believes that reclaiming PPI payments connected to a mortgage is different from loan PPI. I hope someone can give me some guidance as I believe I was missold this in exactly the same way that loan PPI appears to have been sold.
My mortgage lender (Halifax) have acknowledged my claim and will be contacting me in the next week. But I am unsure whether this administrator has any idea about the difference between mortgage PPI and loan PPI. looking forward to hearing any comments.

dunstonh

It is nearly 20 years I have been paying the premium and as this payment was simply rolled into my mortgage payment I think I have a case.

On reasons do you think you have a case?
You are way before regulation. Plus, unlike other forms of PPI, ASU (which is what you will have as MPPI wasnt around then - although it is similar) is recommended for mortgages and is generally regarded as the only form of PPI that is worth having.

I hope someone can give me some guidance as I believe I was missold this in exactly the same way that loan PPI appears to have been sold.

How were you mis-sold it? MPPI is different to loan PPI.

But I am unsure whether this administrator has any idea about the difference between mortgage PPI and loan PPI.

You will probably get lucky. Not because you have a valid complaint (nothing you have said suggests you do and it does look a bit suspect and opportunistic on your part - albeit based on limited information). You will likely get lucky as Halifax has taken the decision to auto-refund on most complaints without investigation.

Assuming they dont auto-refund, then they complaints handler will know the difference. For example, Loan PPI is most commonly paid out on refunds due to it being single premium and charged interest on. That doesnt apply to you.

Burden007

Thanks for the comments, as it helps me understand where I stand on this.

dunstonh wrote: »

On reasons do you think you have a case?
You are way before regulation. Plus, unlike other forms of PPI, ASU (which is what you will have as MPPI wasnt around then - although it is similar) is recommended for mortgages and is generally regarded as the only form of PPI that is worth having.

How were you mis-sold it? MPPI is different to loan PPI.

My position was I needed a mortgage and the only way I could get it was to accept the insurance. No choice, no alternatives, no discussion if it was suitable.
Lender insisted I must have it so I did.

You will probably get lucky. Not because you have a valid complaint (nothing you have said suggests you do and it does look a bit suspect and opportunistic on your part - albeit based on limited information). You will likely get lucky as Halifax has taken the decision to auto-refund on most complaints without investigation.

Assuming they dont auto-refund, then they complaints handler will know the difference. For example, Loan PPI is most commonly paid out on refunds due to it being single premium and charged interest on. That doesnt apply to you.

Think I understand what you are saying, that it was not a single premium, but a perpetual monthly payment (until the mortgage ends) and therefore did not have any interest added.

dunstonh

My position was I needed a mortgage and the only way I could get it was to accept the insurance. No choice, no alternatives, no discussion if it was suitable.
Lender insisted I must have it so I did.

And what evidence do you have to support that allegation? i.e. if they say "no they didnt". Then that complaint hits a brick wall. Yes, it is a valid mis-sale reason but it is the weakest of the lot. Very few get upheld on that basis. If you think about it, you could complain about virtually everything going using that reason whether it was truthful or not (remember that as many of half the PPI complaints are thought to be try-it-on/fraudulent complaints with people making up reasons to complain).

It is also possible that it was required. When a lender does actually require insurance to secure borrowing then that is allowed. In the 80s and 90s it was very common and if that was the case then they can reject your complaint. Its when you are lied to that its bad. i.e. being told you have to have it when you dont is wrong. Being told you have to have it when you do is acceptable. Even today you get the odd deal which requires the purchase of a different product.

Think I understand what you are saying, that it was not a single premium, but a perpetual monthly payment (until the mortgage ends) and therefore did not have any interest added.

Which means it was set up correctly.

Most common payout reasons for MPPI are:
1 - single premium instead of monthly premium
2 - not eligible for cover
3 - no financial need for cover (i.e. existing sick pay significantly overlaps)
4 - getting lucky as lender is auto paying out on complaints up to a certain value.

magpiecottage

Burden007 wrote: »

I am unsure whether this administrator has any idea about the difference between mortgage PPI and loan PPI.

I suspect not.

In essence it is the same thing - it pays out if you lose your earnings through unemployment or illness.

However, there are differences. In particular, MPPI is far more likely to be paid by a monthly premium rather than as a single premium which is added to your loan. This eliminates the most common reason a complaint about other forms of PPI is upheld.

It is also pretty easy to demonstrate a need. If you do not keep up repayments on an unsecured loan then you might get a default registered against you or even a county court judgement. The lender might even be able to repossess the item you bought (if it is a hire purchase arrangement) but that would not leave you destitute (even if it was a car and you had to start walking).

On the other hand, default on a mortgage and you can be left destitute.

On top of that, if the mortgage was arranged by an independent broker, the lender can simply refer you to them. A policy taken out 20 years ago would not then fall under FOS jurisdiction and the broker, if they still exist and have any sense, will simply rely on Section 14B of the Limitation Act 1980 and time bar you.

tropicaltopaz

Hi, I've also been redirected from the main PPI forum.

We took out a joint mortgage with Chelsea building society in 2000 and moved it from them in May 2008.

I have statements showing premiums for ASU/Redundancy cover which were added each year and payments spread out over the year, it's added on to the mortgage payment along with the property insurance.

My husband arranged it over the phone but can't remember what was said about PPI or ASU, but when we transferred the mortgage we realised that he had sufficient cover through work, and we don't need it.

We don't have the agreement, and when we sent a letter asking for a copy we got the reply "your mortgage was not executed under the Consumer Credit Agreement and therefore we are unable to supply the information you have requested", with the return of my £1 cheque. They included a copy of the Offer of Advance (4 pages) which don't mention the ASU.

Should we make a claim?
Thanks to anyone that can help

solbamba

Please can someone give me a bit of advice.

I have a mortgage with Woolwich/Barclays, and I would like to know if I have PPi on the mortgage.
Is there a letter/template that I can send them?

dunstonh

We don't have the agreement, and when we sent a letter asking for a copy we got the reply "your mortgage was not executed under the Consumer Credit Agreement and therefore we are unable to supply the information you have requested", with the return of my £1 cheque. They included a copy of the Offer of Advance (4 pages) which don't mention the ASU.

Should we make a claim?

You have not stated your reasons for complaint. So, we cant say if you should make a complaint or not.

I have a mortgage with Woolwich/Barclays, and I would like to know if I have PPi on the mortgage.
Is there a letter/template that I can send them?

You dont need a template letter. You just look at your bank statement. MPPI is paid by direct debit from your current account.

alfies_mom

Hi all

I've just completed a form to reclaim PPI on my mortgage. Not sure if we will be successful but my friend just received £5400 on hers after a friend of her just got £13k so thought it's worth a try?

Its with Norwich & Peterborough, wonder if anyone else out there has had any success with them?

My hubby is and was self employed at the time so we are going along the route that it isn't worth diddly if you are self employed.

Also my hubby is gonna try to reclaim PPI on his Barclayloan and Barclaycard on the same basis. Any success stories here? His loan is still running with barclays so he is more than happy to use it to pay back the debt if he is successful.

So many success stories on here, just hope we can add to this list and thanks to so many people who have commented on this site, it's amazing

alfies_mom

My friend just received £5400 back on her MPPI from Halifax, they have a link on their website and she said it was so straightforward it was unbelievable. Had look myself and it is very clear and easy to understand. She received her cheque within 5 weeks so its worth a try - good luck


Message from BURDEN007 below (don't know how to do the quote thing sorry!)
''I have finally decided to make a claim for my mortgage PPI.
It is nearly 20 years I have been paying the premium and as this payment was simply rolled into my mortgage payment I think I have a case.
The article talks about getting your payments back +8% interest.
Any idea how this is calculated?
Having got a calculator out the difference between payments plus 8% and each years payment plus 8% for each year is massively different!

I have been redirected to this forum from the main PPI forum as the person on that forum believes that reclaiming PPI payments connected to a mortgage is different from loan PPI. I hope someone can give me some guidance as I believe I was missold this in exactly the same way that loan PPI appears to have been sold.
My mortgage lender (Halifax) have acknowledged my claim and will be contacting me in the next week. But I am unsure whether this administrator has any idea about the difference between mortgage PPI and loan PPI. looking forward to hearing any comments.''

dunstonh

My friend just received £5400 back on her MPPI from Halifax, they have a link on their website and she said it was so straightforward it was unbelievable. Had look myself and it is very clear and easy to understand. She received her cheque within 5 weeks so its worth a try - good luck

Halifax are an exception though. They are auto paying out on all complaints. That will end at some point when they clear their backlog. It also doesnt reflect on other providers/distribution channels.