Additional Mortgage Security Fee

seaweed5254

Hello all,

I'm just wondering if this fee is the same as PPI. I took a 100% mortgage in 2004 with BoS. I was charged this fee because of it. In the conditions of the contract it says that because they are lending me 100% and not 75%, they will arrange the Additional Mortgage Security to cover the difference.
This is on top of the product fee.

Was this how it really used to work? Or will i be able to claim this back?

Thanks in advance

[Deleted User]

seaweed5254 wrote: »

Was this how it really used to work? Or will i be able to claim this back?

You had applied for a 100% mortgage and the Bank required some security in order that you be granted the finance.
On what basis would you complain that this was mis-sold to you? It was a condition of your contract that you take this insurance. It is not PPI.

seaweed5254

I was a first time buyer (and new to the country) then and at that time i didn't know how things worked. I only spoke with the mortgage adviser and i thought i didn't have any other choice?

[Deleted User]

seaweed5254 wrote: »

i thought i didn't have any other choice?

You didn't have any choice. It was a condition of you receiving a 100% mortgage. Being a first time buyer and a new entrant to the country would have narrowed your choice even further.
Nothing you have said indicates that this insurance was mis-sold to you.

It is not PPI.

Goldiegirl

Moneyineptitude wrote: »

You didn't have any choice. It was a condition of you receiving a 100% mortgage. Being a first time buyer and a new entrant to the country would have narrowed your choice even further.
Nothing you have said indicates that this insurance was mis-sold to you.

It is not PPI.

Absolutely correct, there was no choice. If the OP wanted that mortgage they HAD to have that insurance.

There is no mis-selling.

dunstonh

Sounds like a MIG. Mortgage indemnity guarantee. As stated, its not PPi (not even close) and it was a condition of borrowing. So, not mis-sold.

roonaldo

seaweed5254 wrote: »

I was charged this fee because of it. In the conditions of the contract it says that because they are lending me 100% and not 75%

Like others have said, this is Mortgage Indemnity Guarantee (MIG). You could have avoided it by putting down a deposit. As you probably didnt have a deposit you had to pay this fee. This isnt mis-selling.