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Natwest mrp when mortgage paid off!

Hi everyone,

I am not sure that I am putting this in the right place.

I was wondering if you could help. I have just had a phonecall from my parents to ask if I knew what Natwest MRP was. I looked it up on the internet and it says that this is Mortgage repayment protection.

My parents paid off there mortgage in Feb this year and this has been taken from their account each month even though they have no mortgage.

Should Natwest have cancelled this when the mortgage was finished and would they get their money back for the ones that they have paid?

I hope this makes sense.

Thanks

Sarah

Comments

  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    Would think so send in a letter of complaint and see who's you get on.
  • kingstreet
    kingstreet Posts: 38,972 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    A protection policy is separate to the mortgage. The insurer cannot know it's surplus to requirements if the policyholder doesn't inform them.

    They may have paid off their NatWest mortgage, but they may have done so by remortgaging elsewhere, so mortgage repayment may not be a good indicator that cover is no longer required.

    The plan may pay out on a new mortgage with a different lender, or on no mortgage at all, should a claimable event take place.

    For this reason, it is beholden on the policyholder/borrower to decide on the future of his/her protection plans.

    As a gesture of goodwill the insurer may refund the premiums paid "unnecessarily" but I don't see this getting a welcome response from FOS should the insurer decline the refund request.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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