Mortgage PPI won't cover monthly payments...Have I been missold?

jinty246

I've just received my first ever "annual" Mortgage PPI review. On reading it I have discovered that the amount it will pay out in the event of a claim does not cover my monthly mortgage payment. I was under the impression that this policy would cover my payments.

Have I been mis sold this insurance and if so can I attempt to reclaim?

I have held this policy for 11 years and this is the first review I've received...the monthly premium has also been increased over the years to cover additional borrowing on the mortgage.

Any advice would be great

Thanks

dunstonh

I've just received my first ever "annual" Mortgage PPI review. On reading it I have discovered that the amount it will pay out in the event of a claim does not cover my monthly mortgage payment. I was under the impression that this policy would cover my payments.

As mortgage payments go up and down with interest rates, you can find the cover needs to be adjusted as well. Plus, many people only cover a certain amount due to budget constraints.

Have I been mis sold this insurance and if so can I attempt to reclaim?

No. You can however ask them to increase the cover and pay more towards it if you want more. If you always wanted to pay more then you have effectively got away with it. Complaining that you want to pay and asking them to backdate it would not be a good complaint to make.

jinty246

dunstonh wrote: »

As mortgage payments go up and down with interest rates, you can find the cover needs to be adjusted as well. Plus, many people only cover a certain amount due to budget constraints.


No. You can however ask them to increase the cover and pay more towards it if you want more. If you always wanted to pay more then you have effectively got away with it. Complaining that you want to pay and asking them to backdate it would not be a good complaint to make.

Thanks for your reply. My monthly mortgage payment has gone down by over £200 since interest rate cuts but my PPI is still going to be £175 short on the lower payment. When we purchased this insurance we were assured that it would cover the mortgage payment and has been adjusted over the years to make sure it would! It is already way more expensive than similar products which would cover the entire mortgage payment and more so I will be cancelling this policy and taking a new one elsewhere which will cover our needs.

Surely to tell someone that the insurance will cover the payments when they were much higher than they are now and to only cover just over half of what the original amount was is miss selling?

[Deleted User]

jinty246 wrote: »

Surely to tell someone that the insurance will cover the payments when they were much higher than they are now and to only cover just over half of what the original amount was is miss selling?

Can you prove this accusation?
I doubt any of your mortgage documentation has any guarantee of the insurance covering your whole mortgage repayment. If it does, then you can complain.