Mortgage PPI question 25 August 2013 at 12:17PM edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc 1 reply 934 views

padster21

Hi all,

I'm new to this forum and have a question to test the sages here.

We bought a property, using a Cheshire Building Society mortgage in 2007. In 2009, my company re-located me and my family to Malta. We visited the branch where we arranged the mortgage before leaving to ask if we needed to do anything as we were looking to keep the house and rent it out (eg, change to a buy to let mortgage). We were told all was fine and passed on our new Malta address as soon as we arrived.

A couple of months ago I was made redundant and we are returning back to our house. I have tried to make a claim on the insurance but was re-buffed with the insurance company saying as neither me or 1 of my immediate family was living there it's invalid. Now, given we have done everything to inform the bank of our circumstances and have a letter from them addressed to both me and my wife in Malta I feel they're not being entirely fair.

I have put a claim in for mis-sold as they were fully aware that neither me or the wife were living there, we informed the bank we were looking to rent to a third party and they were happy to take the premiums but not pay up now. So then, what are my chances folks?

dunstonh

Now, given we have done everything to inform the bank of our circumstances and have a letter from them addressed to both me and my wife in Malta I feel they're not being entirely fair.

Did you inform the insurance company or your financial adviser? The bank is the lender. However, it is not the insurer or adviser.

I have put a claim in for mis-sold as they were fully aware that neither me or the wife were living there

Mis-sale relates to the sale. However, the changes occurred post sale. So, it cant be a mis-sale.

we informed the bank we were looking to rent to a third party and they were happy to take the premiums but not pay up now.

The bank wasnt taking the premiums. The insurer was. You didnt ask the insurer.

So then, what are my chances folks?

Typically, in these scenarios, they will look at the date you became ineligible and refund from that point onwards. No inaccurate or made-up allegations of mis-sale needed. Just simple ineligibility from a given date. You are still in part relying on their goodwill as you are in part responsible for this. However, you would typically expect a part refund framed as a goodwill gesture.