Mppi .

alfiemurphy

mortgage - redundancy insurance

Took out a mortgage with the Halifax in 1993. We also purchased redundancy insurance with them. The policy covers both my wife and myself, and if either was laid off would pay 50% of the mortgage for 2 years, which they later increased to 65% free of an extra charge. We have never [touch wood] claimed on the policy. We paid £18 per month at the start but we increased our mortgage payments as we changed from an endowment to a repayment and also cut the number of years to pay it off until we now pay £40 per month.

With just over a year to go until the mortgage is paid off, and only £6,000 to pay, can we do a PPI claim, as we feel we were wrongly advised, as both of us in the event of illness would be paid 100% wages for 6 months, and then 50% wages for another six?

Maybe we should wait until the mortgage is finished, but time could be against us with PPI claims being set deadline dates. Maybe, because we have a 5-year fixed mortgage, this payment was an average for the 5-year period and we cannot back out early.

If we were successful we could pay off the mortgage immediately and save ourselves this £40 per month redundancy payment, although I feel if we pay it until the end of mortgage any pay-out would be money in the bank.

Could we have your thoughts please?

societys_child

Six months full pay/ 6 months half is not normally considered anywhere near enough to repay a mortgage (lets face it, you could lose your home) and this reason for complaint is usually rejected by both the banks and the FOS

dunstonh

With just over a year to go until the mortgage is paid off, and only £6,000 to pay, can we do a PPI claim, as we feel we were wrongly advised, as both of us in the event of illness would be paid 100% wages for 6 months, and then 50% wages for another six?

You can complain. However, the FOS have been rejecting complaints on that basis. Employer sickness benefits are a good reason on short term debts such as loans and credit cards but not good on a mortgage PPI. Main reasons for this are:
1 - its long term. A lot can happen in 25 years.
2 - the consequences of not paying the mortgage are far greater than not paying a loan or credit card
3 - most MPPI pays out in addition to employer benefits (quite a lot of credit card/loan PPI does not)

Most MPPI complaints fail. You seem to have wanted it as well.

If we were successful we could pay off the mortgage immediately and save ourselves this £40 per month redundancy payment, although I feel if we pay it until the end of mortgage any pay-out would be money in the bank.

You make this sound like you are trying-it-on rather than having a genuine complaint. You are making an allegation of wrongdoing against a member of staff. If that staff member was unregulated then there is not likely to be any comeback on them. However, if it was a regulated member of staff, you could be affecting their current and future employment as well as earnings. So, there are consequences of a try-it-on complaint. (with loan and credit card PPI, regulated staff were not involved. However, with MPPI they can be). I am not saying you are trying it on. Just how your post has come across. Written text can often appear different to your intention. However, if you are, just be aware that there can be consequences for others.

As it stands, using the employer sick pay excuse is an easy rejection by Halifax if they choose to.

magpiecottage

In 1993, your mortgage would have either been arranged by Halifax itself or by a broker,

If it was a broker then you will have no comeback - even if they were "tied" to an insurance company for endowment policies and so on. FOS will have no jurisdiction and the broker can simply use Section 14B of the Limitation Act 1980 to timebar a complaint as it is more than 15 years ago.

If it was Halifax then it MAY have to consider the complaint but some of its mortgage products made these policies a condition of the loan. If it can show you had such a product your complaint can be defended on that alone.

Even without it, I fail to see how the sick pay arrangements from your employer conflict with a policy designed to protect you against redundancy.

So, from what you have written, I would say there is little or no chance of a complaint being upheld.

alfiemurphy

You guys are right . I am trying it on . But considering the banking communities greed by causing a worldwide money crisis and the financial meltdown for millions perhaps we deserve some payback . The government even used our taxes to bail them out . In my case this has resulted in no pay rises for 4 years and screwing up my pension . Not to mention my savings having almost no interest added for years so maybe the greedy bankers deserve pay back by any means we can .
Anyway back to my mppi . Can I have suggestions for the best way to approach this claim please .

-taff

Complaint, not claim.

Phone them up.

dunstonh

But considering the banking communities greed by causing a worldwide money crisis and the financial meltdown for millions perhaps we deserve some payback .

Dont mix up retail banking with the type of banking that caused that.

The government even used our taxes to bail them out .

As has happened with many other industries. Do you act the same way towards those?

In my case this has resulted in no pay rises for 4 years and screwing up my pension .

How has it screwed up your pension? Unless you are retiring in the next year or two, its actually been good for pensions.

Can I have suggestions for the best way to approach this claim please .

problem is that you dont appear to have any grounds for complaint.

magpiecottage

In 1993 Halifax was not a bank so they cannot have been greedy bankers.

It is also probable that your pension scheme invested in banks - so making unfounded claims against them will have an adverse effect on your pension.

If the banks are paying out redress too, then that has to be factored in to the interest they pay and since Lloyds, the current parent of Halifax, is largely owned by the taxpayer, the cost will come out of your pocket and mine.

alfiemurphy

I am grateful for your contributions and suitably chastened .
Thank you all .