Can you claim PPI on mortgages

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  • Hi, can anyone tell me the difference between MPI and PPI please
  • dunstonhdunstonh Forumite
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    Hi, can anyone tell me the difference between MPI and PPI please

    MPPI is a form of PPI.

    Main reasons it has a lower success rate on complaints is that:
    1 - MPPI tends to have less restrictions than loan or credit card PPI
    2 - MPPI is nearly always set up correctly as monthly premium
    3 - MPPI covers a major debt which would cause life changing issues if it could not be paid. So, is considered important
    4 - Many MPPI are sold under advice and advice cases have better audit trails in general (FOS stats show just 0.2% of PPI complaints with them for 11/12 were advised).
    5 - Most mortgage advisers didnt become regulated until 2005. So, that eliminates the ability to complain against most of them
    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.
  • Hi, I took out the paymentcare on a mortgage i had with Abbey, I been paying it for about 6 years and then the premium decreased. This seemed a bit stange to me, but I was paying less for the same product. They said something about it just being a better rate. I'm thinking now that the rate might have come down because of the whole PPI thing. Is this possible? If so would this be grounds to reclaim the higher rate I paid for the previous years? Any help would be greatly recieved.
  • dunstonhdunstonh Forumite
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    Hi, I took out the paymentcare on a mortgage i had with Abbey, I been paying it for about 6 years and then the premium decreased. This seemed a bit stange to me, but I was paying less for the same product

    MPPI does not have guaranteed rates. So, premiums can and will change. You tend to find they go up during periods of higher risk of claim and down in periods of lower risk of claim.
    I'm thinking now that the rate might have come down because of the whole PPI thing.

    No. That would not make any sense.
    If so would this be grounds to reclaim the higher rate I paid for the previous years?

    No. A complaint about the product pricing would be rejected and as it is a commercial decision, the FOS would not investigate it either. The product did what the product is expected to do with regards to pricing.

    Plus, bank products are typically expensive. You dont buy from a bank to get quality products or good pricing. So, it would be a futile complaint.
    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.
  • roonaldoroonaldo Forumite
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    Hi, I took out the paymentcare on a mortgage i had with Abbey, I been paying it for about 6 years and then the premium decreased.
    was it linked to your mortgage payment? ie on a variable rate that was going down. nothing you said suggested anything was mis-sold.
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