Mppi new and old policys

Gstyle

Hi all,

Me and my wife took our mortgage out in 2004 with the halifax and we were told we could not have the mortgage if we did not have Mppi. We were never told that we did not have to have it with them so we have been paying what i believe to be a mis-sold poilcy since then and also at a higher price than what we could have got else where.

We are also buying our second home and had a call from them on saturday to say we had to go in and sign some paper work only when we got there it was to look at sorting out the Mppi again....Now i have only just started to understand that you can go else where for this policy and again the cost of this Mppi seems very high. the policy they have shown us is with scottish widows.

Any advice on these please.

dunstonh

We are also buying our second home and had a call from them on saturday to say we had to go in and sign some paper work only when we got there it was to look at sorting out the Mppi again....Now i have only just started to understand that you can go else where for this policy and again the cost of this Mppi seems very high. the policy they have shown us is with scottish widows.

Scottish Widows are a life assurance company and dont offer MPPI. Plus, MPPI can no longer be sold with the mortgage.

Any bank insurance is usually expensive. Typically 25-40% more than what you would pay via an IFA. Cost is not grounds for complaint though.

Gstyle

Sorry yes you are correct it was for life assurance which we have been told we need to have in place for the new mortgage.

I understand what you are saying about cost not being a grounds for complant and claim but being told we basically had no choice but to go with them for it surely is.

As for the scottish widows life assurance policy i am correct in thinking i can get this anywhere i like........Also anyone idea of which companes to look at for as in like for like cover.

Thanks for the reply dunstonh.

dunstonh

Sorry yes you are correct it was for life assurance which we have been told we need to have in place for the new mortgage.

That is a lie and just shows you that the banks have not learned from their mistakes.

I understand what you are saying about cost not being a grounds for complant and claim but being told we basically had no choice but to go with them for it surely is.

It is wrong for them to tell you that but it is near impossible to prove they said it.

As for the scottish widows life assurance policy i am correct in thinking i can get this anywhere i like........Also anyone idea of which companes to look at for as in like for like cover.

A scottish Widows product via a sales rep at the bank is more expensive than a scot wid product via an IFA. However, chances are that the IFA will come up with better and lower cost (normally do).

Gstyle

Thanks for all the info i will ring them first thing and cancel the scot widow policy and look into getting it maybe dircet from them if not else where. On the Mppi subject i was thinking of ringing them or putting a claim in anyway and see what happens...Just don't want any conflict with the new mortgage though.

I'm not sure of what level of cover i will need for the life assurance and do you know if any cover for redundancy only again been told by our mortgage peeps that scot widows do not so i will have to keep another policy i have with them open and this is another reason why i'm all over the place with this house move as it seems peeps are trying to take me for a fool and my hard earn'ed.....

I must admit i'm very angry at myself for not knowing better when i we took out our first Mppi but it was our first house and i did not know much about such things and you trust peeps to give the correct info.....More fool me i suppose.

magpiecottage

dunstonh wrote: »

That is a lie and just shows you that the banks have not learned from their mistakes.

Not necessarily. The OP did need the cover in the sense that it would be imprudent not to have it even if it was not compulsory - in the same way that we need travel insurance if we go abroad because we could not afford the medical bills but are not forced to purchase it.