PPI Advice, financial advisor sold mortgage PPI

Brungle_2

Hi,

I'm just after a bit of advice please. When we bought our house about 6 years ago it was our first mortgage and decided to go via an independant financial/mortgage advisor. He basically made out that income/payment protection insurance was essential for our new mortgage which was with Northern Rock at the time, the insurance was supplied by Legal and General. I've obviously later (about 4 years too late) realised this was not essential!

As they are different companies entirely are we able to reclaim PPI or is this system only applicable if the intial loan/mortgage is with the same company who charges the PPI premium?

I hope that makes sense.

thanks in advance

dunstonh

He basically made out that income/payment protection insurance was essential for our new mortgage which was with Northern Rock at the time, the insurance was supplied by Legal and General. I've obviously later (about 4 years too late) realised this was not essential!

Many mortgage advisers have the business model that requires you to purchase insurance through them to get free mortgage advice. For example, an independent would normally be fee based. Did you pay a fee or did the insurance cover it?

This is allowed.

Also, are you sure it was an independent? It can make a difference but L&G tied agents have a large distribution channel in estate agents. They are not independent. They work for L&G.

As they are different companies entirely are we able to reclaim PPI or is this system only applicable if the intial loan/mortgage is with the same company who charges the PPI premium?

You have a right to complain to the adviser about anything you like. However, mortgage insurance complaints are mostly rejected and to give you an indication, just 0.2% of complaints at the FOS are adviser cases (most of which get rejected). The PPI issue is not seen as an adviser failing.

Advisers tend to have better audit trails (especially independents - as acknowledged by the FOS last November who highlighted the better quality file keeping with independents). Advisers dont auto payout but will typically vigorously defend a complaint unless it is clearly wrong. Also, with mortgage insurance generally regarded as common sense, you would need something stronger that will be an easily rejected complaint as it currently stands.

magpiecottage

dunstonh wrote: »

You have a right to complain to the adviser about anything you like. However, mortgage insurance complaints are mostly rejected and to give you an indication, just 0.2% of complaints at the FOS are adviser cases (most of which get rejected). The PPI issue is not seen as an adviser failing.

That said, at least one Appointed Representative of Legal & General has been found to have been selling single premium policies and adding the premium to the loan as well as adding a premium for a "future service" to the loan.

Both are generally seen as missold.

dunstonh

magpiecottage wrote: »

That said, at least one Appointed Representative of Legal & General has been found to have been selling single premium policies and adding the premium to the loan as well as adding a premium for a "future service" to the loan.

Both are generally seen as missold.

hence why I was asking about whether it was really an independent and not perhaps and L&G tied agent.

Single premium MPPI is nearly always considered bad.

Brungle_2

thanks for the responses, the advisor worked for Sequence https://www.sequencehome.co.uk so was seperate from L&G. We did not pay a fee initially as he explained his company gained commision from the mortgage provider.
When our fixed deal was up we had another meeting with him but at this point we did pay a fee to have their mortgage advice 'for life'.
Lessons learned.

dunstonh

Whilst your complaint on the PPI is probably a no-goer. The mortgage advice for life fee is generally regarded as a bad thing. You could try a complaint on that.