mortgage ins and offsetting

lilibet1

Does anyone know please

My dh has Halifax total mortgage protection, if he claimed on this could the halifax off set the money that should be paid to the mortgage and pay off a loan he has defalted on instead please? He is not well at the moment but wont claim as he thinks they may pay off his overdraft and defaulted loan instead.

However the dd for the insurance goes from his new coop bank account and therefore they should pay any monies into this new account. Just wondering if anyone knows the answer?

many thanks in advance

~Beanie~

They will pay it into his Co-op account so as you say, the monies will be paid into there and not be used against his overdraft/loan.

lilibet1

Thanks beanie, is that from a legal point of view? I appreciate your help.

opinions4u

No lender can apply right of set off where this would leave priority bills such as mortgage or council tax unpaid.

BCOBS 5.1.3

BCOBS 4.1.4

lilibet1

Thank you, I have called them this morning and asked and they said the same, always good advice here x