Is ppi ever compulsory/a condition of mortgage?

Troiselle

hi, I am new to this forum and have successfully claimed missold ppi from Renault Finance on an old car finance deal and have now discoved ppi on an old nationwide (1991-2000) 100% mortgage.
I have all the documentation & I completed the questionnaire and posted it ( I had previously done so online and waited patiently only to be told it was never received..!) the letter received in response is 2 pages long arguing why my claim is not upheld but states the following...

"As you had taken out a mortgage which was more than 95% of the purchase price of the property value, taking out MPC (mortgage protection cover) was a condition of your mortgage. this was clearly detailed in your Mortgage Offer".

I do not have this particular information as I cannot find it in the blurb on the docs I do have and so I have asked for it to be provided by the PPI complaints team at Nationwide who said they would post it.

So I am querying would it genuinely have been a condition at the time?
I do recall being told we had to have it so we just did as we were 'advised'. We also paid 12 months indemnity premiums of £87 because it was 100% mortgage.

Should I accept this or should I further contact the Financial ombudsman?
Sound advice would be hugely appreciated, thanks

antrobus

Troiselle wrote: »

...So I am querying would it genuinely have been a condition at the time? ..

Yes. It was quite common at one time for lenders to require a Mortgage Indemnity Guarantee (MIG) policy for a high LTV mortgage. (Paid one myself back in the 1980s.)

It's not PPI.

dunstonh

Is ppi ever compulsory/a condition of mortgage?

Yes. There have been a number of deals issued over the years that required the compulsory purchase of an insurance product. Not so much in recent times but certainly the mid 90s to early 2000s did see deals that needed MPPI to get the special rate.

"As you had taken out a mortgage which was more than 95% of the purchase price of the property value, taking out MPC (mortgage protection cover) was a condition of your mortgage. this was clearly detailed in your Mortgage Offer".

That may well be MIG or high value lending charge. Not PPI. Was this paid by monthly premium direct debit to an insurer or taken as an initial charge or added to the mortgage? (if latter, then its not PPI)

However, it doesnt really matter. It clearly states that it is a condition of lending and that is the end of the story.

Should I accept this or should I further contact the Financial ombudsman?

You dont appear to have any grounds for complaint. If its a condition of lending then its game over. Their response verifies it is a condition. So, game over.

roonaldo

yep this sounds like a MIG, not PPI.
MIGs will be a condition of the lending. No mig = no mortgage. You should have put down a bigger deposit if you wanted to avoid paying it.
I also expect a complaint about it would be time barred.