Mortgage assurance

Michellel1973

Can anyone help with my query?
My father paid off his mortgage in 2000, yet the bank have still been taking out his direct debit payment for mortgage assurance despite the fact he has had no mortgage for twelve years. I told him to cancel the direct debit, but is he eligible to get his payments back, as the bank never advised him he no longer needed the policy?

Its a hell of a lot of money he has paid so I would be glad if he could claim it back.

opinions4u

While the life assurance may have been taken out with a view to repaying the mortgage in case of death, it isn't directly linked to the mortgage.

So if the policyholder doesn't cancel the policy it will continue to provide cover and collect the premiums due.

If he didn't seek advice about the policy at the time the mortgage was repaid then I don't see how anybody else is to blame.

While he can cancel the policy now, he should consider whether keeping it running has value. If it was cancelled and he died, would somebody lose out financially?