Mortgage indemnity insurance reclaiming

willsandolly

Hi

I have been searching this site to see if anyone has reclaimed the mortage indemnity insurance policies that were once compulsory when taking out a mortage?

I have had various mortgages over the years and can remember paying it. It would usually cost around the £1000 mark and i later found out that it was actually covering the mortgage lender and not the mortgage holder.

Does anyone have any information on these please?

Thank you.

Michelle

Insider101

willsandolly wrote: »

Hi

I have been searching this site to see if anyone has reclaimed the mortage indemnity insurance policies that were once compulsory when taking out a mortage?

I have had various mortgages over the years and can remember paying it. It would usually cost around the £1000 mark and i later found out that it was actually covering the mortgage lender and not the mortgage holder.

Does anyone have any information on these please?

Thank you.

Michelle

To be blunt. You can't reclaim it. It is a legitimate exercise of the lender's commercial judgement. They are lending you a high LTV so want the security of the cover. The alternative is they refuse to lend the money and you look elsewhere.

dunstonh

I have been searching this site to see if anyone has reclaimed the mortage indemnity insurance policies that were once compulsory when taking out a mortage?

There is nothing to complain about. There is no wrongdoing with it. That is why you dont see it.

Not everything the banks do is bad or wrong.

Goldiegirl

They weren't 'compulsory'

You could have put down a larger deposit, then the mortgage indemnity insurance wouldn't have been required.

[Deleted User]

willsandolly wrote: »

i later found out that it was actually covering the mortgage lender and not the mortgage holder.

Yes it was covering the mortgage lender from possible losses incurred because you were regarded as too much of a risk to grant a mortgage to otherwise.
Effectively you paid the insurance or the Bank would not have granted you the mortgage. The alternative was to put down a larger deposit.

Of course you can't reclaim this money.

roonaldo

willsandolly wrote: »

Hi

I have been searching this site to see if anyone has reclaimed the mortage indemnity insurance policies that were once compulsory when taking out a mortage?

I have had various mortgages over the years and can remember paying it. It would usually cost around the £1000 mark and i later found out that it was actually covering the mortgage lender and not the mortgage holder.

Does anyone have any information on these please?

Thank you.

Michelle

a big fat no. get a bigger deposit or go elsewhere for the mortgage is the way it is viewed.

banks are allowed to charge fees. MIG's cant be mis-sold.

pippa2301

roonaldo wrote: »

a big fat no. get a bigger deposit or go elsewhere for the mortgage is the way it is viewed.

banks are allowed to charge fees. MIG's cant be mis-sold.

How about if you were told they covered the banks but weren't told they would still come after you for the money and hound you every 6 months for the next 20 years +, about your income and expenditure whilst your ex husband is sitting pretty abroad not paying a penny. How about when selling the property they didn't bother getting the best price possible because they knew they had this insurance. How about the fact that they wont take into account any personal circumstances.

Truth is my ex husband left me in hospital with serious injuries and cleared of to Mauritius with a 19 year old art student. Flat fell into arrears, they wouldn't let me sell it without his signature despite it just about being in positive equity, they wouldn't let me rent it out without his signature, They wouldn't let me surrender it without his signature.....Then took almost a year to repossess despite knowing my predicament. Failed to claim on buildings insurance for an essential repair and then sold it at auction along with the derelict flat beneath for well under market value. Result they are chasing me for £25,000 which I have been paying at £10 a month for 15+ years. Every time they call or write it reminds me of my ex and his violence and they seem to need to do this despite my pleas, every 6 months.

I am exactly the type of person this insurance was there to protect them against. They claimed it so should take a view and leave me alone.

Please don't come spouting about their obligation to the insurance company!!!! I know all that but there is legislation somewhere that says they don't "have" to chase me for it?

Can anyone please help me get out of this mess?

roonaldo

pippa2301 wrote: »

How about if you were told they covered the banks but weren't told they would still come after you for the money and hound you every 6 months for the next 20 years +, about your income and expenditure whilst your ex husband is sitting pretty abroad not paying a penny. How about when selling the property they didn't bother getting the best price possible because they knew they had this insurance. How about the fact that they wont take into account any personal circumstances.

Truth is my ex husband left me in hospital with serious injuries and cleared of to Mauritius with a 19 year old art student. Flat fell into arrears, they wouldn't let me sell it without his signature despite it just about being in positive equity, they wouldn't let me rent it out without his signature, They wouldn't let me surrender it without his signature.....Then took almost a year to repossess despite knowing my predicament. Failed to claim on buildings insurance for an essential repair and then sold it at auction along with the derelict flat beneath for well under market value. Result they are chasing me for £25,000 which I have been paying at £10 a month for 15+ years. Every time they call or write it reminds me of my ex and his violence and they seem to need to do this despite my pleas, every 6 months.

I am exactly the type of person this insurance was there to protect them against. They claimed it so should take a view and leave me alone.

Please don't come spouting about their obligation to the insurance company!!!! I know all that but there is legislation somewhere that says they don't "have" to chase me for it?

Can anyone please help me get out of this mess?

The insurance company are entitled to reclaim any loses from you.

The MIGs are not to protect consumers but to protect the bank. It sounds like your flat didnt sell for as much as you hoped due to the flat below which may have significantly devalued yours. You have also been stitched up by your ex, which isnt really anything do with MIGs or lack or deposit.

You may be best off posting in another section of MSE.

dunstonh

How about if you were told they covered the banks but weren't told they would still come after you for the money and hound you every 6 months for the next 20 years +, about your income and expenditure whilst your ex husband is sitting pretty abroad not paying a penny. How about when selling the property they didn't bother getting the best price possible because they knew they had this insurance. How about the fact that they wont take into account any personal circumstances.

Irrelevant. You had no choice in the matter (apart from either not buying the mortgage or saving more before buying). You were paying to protect the bank. Not you.

am exactly the type of person this insurance was there to protect them against. They claimed it so should take a view and leave me alone.

No you are not. That is not how MIG works.

Please don't come spouting about their obligation to the insurance company!!!! I know all that but there is legislation somewhere that says they don't "have" to chase me for it?

There is no such legislation.

Can anyone please help me get out of this mess?

You are barking up the wrong tree here. Focus on your financial situation and not irrelevant issues like this.

pippa2301

dunstonh wrote: »

Irrelevant. You had no choice in the matter (apart from either not buying the mortgage or saving more before buying). You were paying to protect the bank. Not you.



No you are not. That is not how MIG works.



There is no such legislation.



You are barking up the wrong tree here. Focus on your financial situation and not irrelevant issues like this.

Legislation May be the wrong word. But I found it written on some code of practice somewhere back last year that there is no legal Obligation for them to chase you for the money. when I have time I will look for it again and report back with a link.

pippa2301

dunstonh wrote: »

Irrelevant. You had no choice in the matter (apart from either not buying the mortgage or saving more before buying). You were paying to protect the bank. Not you.

Not at all irrelevant! They totally mislead me by not telling me I would still be liable to pay. They lead you to believe the insurance is there to protect you as well as them.

As for the price the flat achieved. If they had claimed on the buildings Insurance Which I am still expected to pay for as part of their losses and fixed the water leak then marketed the flat as a single entity they would have achieved much closer to the market value. Thus carrying out their legal obligation to obtain the best possible price.