Mis-sold insurance/mortgage?

mfsxldab

Wow, ok, thanks for the responses. I'll try and address the main questions.

dunstonh :
1. AFAIK it's a remortgage secured against their residential property. It isn't a commercial buy to let which is why it surprises me that the BS let them have the mortgage in the first place. Would (potential) rental income be included in the BS's figures for affordability?
2. Given that it was direct from the BS I'm presuming from what other people have said that it was non-advised.

Holly:
As above.

Don't know what was and wasn't disclosed, but my dad had a job that had sickness benefits (but I don't know what those would have been). In the event he was made redundant a couple of years after taking the mortgage and received a payout. Again, whether this supercedes the amount of this ASU I don't know.

Again thank you for the clarity of your explanation (like Manuel 'I know nothing'). I appreciate what you're saying about the technicality of mis-selling. I spoke to him today about the cover only being for 12 months and he was flabbergasted. He obviously has no idea what he's paying for. I'd like to point out that he isn't a stupid man...

Thrugelmir:

In a sense, but even if he was making money he'd be as surprised to find out about the lack of cover. He thought he was paying for something totally different to what he got.

As an aside to the 'what did he expect?' posters: I don't know - probably good advice - and given that it was 'non-advised' I guess that's the one thing he shouldn't have expected...

holly_hobby

Hi,

Yes - as I said originally it is not a commerical loan.

As a residential remortgage - it is regulated. NB - you should note that just because a mge term exceeds the mortgagors NRA, this does not automatically equate to a poor sale.

However, its not the term that is the problem - as you say, the problem is Dad bought an ASU policy, without he claims, being aware that cover ceased when he was 65 yrs old. Based on my points in my ealier post - I don't believe this was a mis-sale just becuase he only had the benefit of cover for 5 yrs - after all it is DESIGNED to only be active during an individuals normal working life - ie in Dads case his NRA would be 65 at the latest. (ie when he became eligible for basic/state pension, although of course he could have retired earlier than this under his occupational scheme).

I have to be honest, and from I have read, don't believe there to be any merit in a complaint regarding this.

If Dad/you wanted to see all the docs from the sale, to see what he agreed to, and to refresh his memory, and also docs issued on the mge account upto the present date, he could submit a Statue Access Request (SAR) to the lender with a fee of £10, the provider has 40 days to reply, with copies of everything on the account file, including any telephone call recordings - then I hope you may be able to put this to bed.

Hope this helps

Holly

mfsxldab

Thank you Holly. I think we'll look at the paperwork together, and he might end up making a complaint, but without necessarily looking for anything from the lender. From what you and others have said I understand that the sale is acceptable and that it was his responsibility to be in full control of the facts, which evidently he was not. But I think he feels as though as a mutual (which through other products he has helped finance for 30+ years) they should have been more explicit about the insurance. I think he feels the details were wilfully concealed/glossed over when he was sold the insurance, but concedes that he was daft for not double checking.

Anyway, thank you all for your help in explaining the finer points of mortgage insurance sales to a total newb.

R_P_W

So he was 60 and took out a 20 year mortgage? How did he plan ahead to pay the mortgage back?

What did he expect the PPI to cover him against?

Thrugelmir

R_P_W wrote: »

So he was 60 and took out a 20 year mortgage? How did he plan ahead to pay the mortgage back?

What did he expect the PPI to cover him against?

There's more to this tale I suspect.

5 years ago prices were at peak. So unlikely to have been a good investment with hindsight.