Mortgage Protection Insurance

Witchysouth

Hi, this maybe a bit long winded but hopefully will make sense. When we bought our house we were told over the phone that the mortage company requires mortgage protection insurance as well as building insurance before we could get the mortgage. No problem of course but we were never asked about our circumstances in repaying if we needed to. I have looked on the mortgage which simply states 'it is a condition of your mortgage that your property is insured by a reputable insurer', it doesn't say anything else or specify but the person we spoke to said we have to protect our mortgage . we took out seperate mortgage insurance which we didn't need to as we are covered by work if taken ill for 12 months and find that paying this extra money that will probably never pay out, and not being asked if we have provisions to pay our mortgage if we needed to a bit unfair. we didn't take the insurance out with our mortgage company but another company so if i wish to pursue a MPPI claim how do i do it and who do i contact as it is not the company we are paying each month but our mortgage company.

dunstonh

When we bought our house we were told over the phone that the mortage company requires mortgage protection insurance as well as building insurance before we could get the mortgage.

Buildings insurance is a mandatory. Mortgage protection would depend on what you mean by protection. Up until the late 90s (some into early 2000s) it was mandatory with many lenders to have life assurance. Some deals in the 90s through to early 2000s required you to purchase insurance to get that deal. All those things are allowed. Although your case does not appear to be one of those.

we took out seperate mortgage insurance which we didn't need to as we are covered by work if taken ill for 12 months and find that paying this extra money that will probably never pay out, and not being asked if we have provisions to pay our mortgage if we needed to a bit unfair.

FOS has been rejecting complaints on that basis with MPPI (more common for it to be upheld with loan and credit card)

we didn't take the insurance out with our mortgage company but another company so if i wish to pursue a MPPI claim how do i do it and who do i contact as it is not the company we are paying each month but our mortgage company.

The seller of the policy is liable for the sale. So, the lender has no liability in this case. You complain to whoever you bought it through. However, there doesnt really appear to be a valid complaint reason against that seller.

magpiecottage

It is not the insurer that is at fault. It simply provided the product.

The actual seller may be at fault but not if they sold you what you said you needed as a condition of the loan.

If the lender said you needed it when you did not then you may have a grounds for complaint against them but there will be no evidence to persuade anybody, I'm afraid.