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Mortgage Indemnity Fees
kamlesh_2
Posts: 14 Forumite
All
Some time back i got charged around £3000 for an insurance policy to cover the mortgage company against loses in the event that i failed to pay of my mortgage. The policy was for the mortgage company only.
How ever i did not recieve proper advice about this policy and it seems that it came to an end when i move to a different mortgage company.
Some where in this i see an injustice in being forced to pay for the policy, and that it ceases to exist once payed off. There was more than 25% equity so i cant see why the insurance was a must ?
Does any one have any opinions on this....and do you think it might go down the same road as bank refunds ?:money:
Some time back i got charged around £3000 for an insurance policy to cover the mortgage company against loses in the event that i failed to pay of my mortgage. The policy was for the mortgage company only.
How ever i did not recieve proper advice about this policy and it seems that it came to an end when i move to a different mortgage company.
Some where in this i see an injustice in being forced to pay for the policy, and that it ceases to exist once payed off. There was more than 25% equity so i cant see why the insurance was a must ?
Does any one have any opinions on this....and do you think it might go down the same road as bank refunds ?:money:
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Comments
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You havent got a hope in hell.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.0
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25% seems a lot of equity to require such an indemnity policy.
Your mortgage ws presumably conditional on you taking out this policy. No policy = no mortgage, so no misselling I'm afraid. You had the choice of taking this mortgage or not and the mortgage came with a requirement to pay for an indemnity.
Once the mortgage is repaid, the insurance lapses. It would have been your decision to move mortgages so again this was in your control.
The only chance you have is to query why you needed a policy with 25% equity; was this an admin error?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
missed that 25% bit... so a rephrase is needed.
Normally you wouldnt have a hope in hell but 25% deposit used to be the amount you would put down to avoid it.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.0
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