Legal and General Mortgage Decreasing Term Assurance

tez1982

I know this isn't a PPI but I'm very confused on the matter and wonder if someone could help.

I took out a mortgage in 2007 to buy my first property. I went through an agent in my local town. Looking back now I think I got taken for a bit of a ride, and got loaded on insurance - for which the agent got a large commission.

I still have all the paperwork - so what I actually got.

I took out £118k mortgage, I was in a steady job and have no dependants. Yet I was advised to take Mortgage Decreasing Term Assurance with Legal and General. Being young and pretty confused by the whole system I ended up taking it.

After about a year I realised I really didn't want this insurance and tried to cancel it, but was told I'd have to pay a portion of the commission that was paid to the agent if I cancelled before 36 months. So I saw it out and cancelled it as soon as I could.

Do I have any case to claim this back? Where would I go from here?

Thanks for the help!

dunstonh

Was this an L&G sales rep? If so, they do require you to buy insurances with them to allow them to give the free mortgage advice. So, in that respect they can force you to have insurance or pay a fee as an alternative.

However, that does not mean they can recommend any insurance that you do not require. If you are single, with no dependents and it was a sole mortgage then you have no need for life assurance. However, the mortgage decreasing term assurance plan can be Critical illness cover only.

Do I have any case to claim this back? Where would I go from here?

If it is life assurance and you are single, no dependents and sole mortgage then you complain. if it is critical illness cover then there is no wrong doing.

tez1982

It was a Mortgage Advice company, I remember at the time being told they normally charged a fee, but that would be waived if certain insurance products were taken out.

I am single with no dependants, my dad was named on the mortgage as well, but never had any input into it repayments wise etc. I'll be honest I can't remember wether it was critical illness cover or life assurance, I'll have to dig through my paperwork again and have a look.

ado

If your Dad's name was on the mortgage (as guarantor?) then he'd be liable if you couldn't pay for it, so having life insurance might have been relevant as it would have paid the mortgage off leaving him with no liability.

dunstonh

It was a Mortgage Advice company

It sounds like an L&G sales rep. Most brokers dont insist on insurance. L&G are known to be one that does and L&G are not used heavily by IFAs (although would be occasionally)

I am single with no dependants, my dad was named on the mortgage as well

That gives a potential need for life assurance I'm afraid.

magpiecottage

dunstonh wrote: »

That gives a potential need for life assurance I'm afraid.

CI would also be seen as a valid need with the cost of life cover relatively small in comparison.