Reclaiming PPI from current mortgage provider

Mrs.T20

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-taff

why wouldn't it pay out if you were made redundnant or had a critical illness? Or if you died?

dunstonh

We are NHS employees (over 25 years each) and were told that we needed the PPI in case we couldn't pay the mortgage if made redundant, sickness etc. We have full NHS entitlements and have recently found out that if something happened, the policy would not pay out.

Are you sure it wouldnt pay out? Whilst that is the case with a number of loan and credit card PPIs, that is not normally the case with Mortgage PPI.

If Santander have said it wont pay out then you have a cast iron complaint. If you are just hearing this third party then you need to check with Santander first.

Do you actually have MPPI? Many people with mortgages get their life assurance and/or critical illness cover or PHI policy mixed up with PPI thinking they are all the same thing. Just checking to be sure.

Mrs.T20

Thanks for responding.
It's the payment care policy that I am asking about.
We have been informed that because we are covered through our employers we didn't need the cover and it would not pay out. The bank knew we worked for the NHS and we raised the issue with them about whether we needed this additional cover or not and was advised that we did.
I'm asking if we have a claim, will it affect our mortgage and if there is any truth in what we have been told?

dunstonh

We have been informed that because we are covered through our employers we didn't need the cover and it would not pay out.

Who informed you of that? It may be right and frequently is with loan and credit card PPI. However, Mortgage PPI tends to be better quality and most MPPI would pay out. Unless someone who knows your policy has informed you, then any other opinion is just a guess.

Mrs.T20

We have made a successful claim and the bank paid back all of our payments plus interest
It took one letter and an eight week wait but so very worth it!

dunstonh

Well done. Sounds like you get an auto payout given the short timescale.

Mrs.T20

They telephoned us to go through our complaint and clarify some information and we received an offer letter a few days later.

[Deleted User]

Mrs.T20 wrote: »

They telephoned us to go through our complaint and clarify some information and we received an offer letter a few days later.

So an auto payout without proper investigation then.