The Mortgage Point PPI

Broomy

Hi All,

I am just after a bit of advice on whether or not this is a viable option.

In 2005 I took out a 100% mortgage via the broker The Mortgage Point. The guy who sold the Mortgage advised me that the Mortgage was only viable if I took out the PPI that they offered me. I did ask if it was possible at the time to find my own insurance but I was told the only way to get the Mortgage was if I took this policy out ( which I obviously had no choice) The Mortgage was approved and away I went.
The insurance charges were £33.50 PCM and this had to be paid for the duration of the fixed term of 3 years. At one point I attempted to cancel but got a letter saying that if I terminated it then I would be charged fees for early termination and the outstanding balance for the remaining 21 months of the fixed agreement.
I sold the house with no loss or profit in 2009.
Based on what was paid over the 4 years I calculate I paid approx £1608 in PPI just so this mortgage could be taken. I did shop around and all other policies were half of what I was paying.
Now there is no question this was mis-sold (as it was forced) my only problem is that the Mortgage point no longer exists. Can I still claim for this and is there specific people I need to speak to or certain forms?
I am sure the insurance was black horse finance.

Any help would be appreciated

dunstonh

The insurance charges were £33.50 PCM

First thing that verifies is that it is set up correctly. Most MPPI complaints fail but the most common uphold reason is single premium. Yours is monthly which is good.

At one point I attempted to cancel but got a letter saying that if I terminated it then I would be charged fees for early termination and the outstanding balance for the remaining 21 months of the fixed agreement.

Quite normal where the broker is paid to give free mortgage advice out of the commission/fees on the insurance policies.

Now there is no question this was mis-sold (as it was forced)

You are right. It does not appear mis-sold.

Can I still claim for this and is there specific people I need to speak to or certain forms?

You havent been mis-sold. So, why would you want to complain?

Mortgage brokers requiring you to purchase the insurance through them to allow them to offer free mortgage advice is a common model and allowed. You can be given the choice to pay a fee instead and not have the insurance through them but seeing as that is a verbal thing it is impossible to say whether it happened or not. Plus, in most cases the fee is pitched quite high to act as a passive blocker to that option.

Misscarlyi

I'm a newbie so here goes....

In 2006 we remortgaged with the HALIFAX. As my husband who was the main earner at the time was self employed we were advised by the HALIFAX that we would need life cover and PPI for the remortgage to be accepted.

Following their advice we took out life insurance with FRIENDS PROVIDENT and PPI with AXA COUNTRYWIDE INSURANCE SOLUTIONS.

We are still repaying both the PPI and life insurance and I now feel that we were missold this as PPI should be optional.

Please can anyone give me some advice of who to contact HALIFAX or AXA COUNTRYWIDE to reclaim my PPI?

Many thanks

[Deleted User]

Misscarlyi wrote: »

I now feel that we were missold this as PPI should be optional.

Not on mortgages it doesn't. Only if they told you that the PPI was compulsory when it wasn't would you have a valid mis-selling complaint.

Please don't duplicate your posts.

roonaldo

PPI was not allowed to made compulsory after regulation in Jan 2005 even on mortgages. It needed to be made clear it was optional. Prior to regulation some lenders would make it compulsory and if it was then as long as that was made clear then even FOS consider thats ok.

[Deleted User]

roonaldo wrote: »

PPI was not allowed to made compulsory after regulation in Jan 2005 even on mortgages.

Since this mortgage was taken out in 2006 (after regulation) then the OP can complain if told it was compulsory. However, it's still a weak, "hearsay" complaint which Halifax will likely not uphold.

dunstonh

It should be noted that a broker telling someone that they will give "free" mortgage advice if they buy insurance products via them then that is allowed. it is the broker that is making the condition. Not the lender.

roonaldo

Moneyineptitude wrote: »

Since this mortgage was taken out in 2006 (after regulation) then the OP can complain if told it was compulsory. However, it's still a weak, "hearsay" complaint which Halifax will likely not uphold.

I completely agree. It most likely says "Optional insurance" on the demands and needs statement, application form and often in section 9 of the KFI and mortgage offer which would trump any unprovable adviser comment.

[Deleted User]

dunstonh wrote: »

It should be noted that a broker telling someone that they will give "free" mortgage advice if they buy insurance products via them then that is allowed. it is the broker that is making the condition. Not the lender.

Yes, I said as much on one of the OP's other threads…

https://forums.moneysavingexpert.com/discussion/comment/64670685#Comment_64670685

Anfield01

Yes you can take it to the Financial Services Compensation Scheme, contact them on 0800 678 1100

magpiecottage

Anfield01 wrote: »

Yes you can take it to the Financial Services Compensation Scheme, contact them on 0800 678 1100

Er - yours is the first post on this thread in nearly 2¾ years.

Besides, you still the FSCS would only pay out if it believed the business went under with a liability to you. If there is no missale then there is no liability.

As others pointed out at the time, there would have been a clear illustration for the mortgage which confirmed which insurances were compulsory and which, if any of those, had to be taken with the lender/broker.

The lender will probably still have the data but, if not it is likely that the FSCS would conclude that it was more likely than not to have been provided because all mainstream lenders were doing so from 31 October 2004, when the FSA began to regulate mortgages.