Mortgage life cover - reclaim?

dunstonh

At the time, I was 23 and was not really aware of many financial affairs other than for normal day to day banking so didnt see that there was anything wrong and trusted the solcitor.

The solicitor deals with the conveyancing. Not financial planning.

I am now wondering after reading the many topics on this wonderful site, if in fact this was an error by halifax. Could my mother have been wrongly informed that she was covered and yet halifax had not adequatly increased her cover for the full mortgage.

There is no requirement to have life assurance on a mortgage. It is optional and at the choice of the borrower.

Can this be raised with halifax and possibly reclaimed?

No for a couple of reasons
1 - it is not a requirement to have it.
2 - it is likely timebarred from complaint (you have 3 years from being reasonably aware of an issue to make a complaint. That expired in 2006 (three years from death). If it pre-regulation but the Halifax wont likely apply that particular issue as they normally consider pre-regulation complaints.
3 - no evidence a policy ever existed for the further advance. So any hypothetical comment you were told around 20 years ago has no sway.

my query was that the insurance she took out should have been sufficient to cover the full mortgage.

It was when she took it out initially. It ceased to be the case when she did a further advance. However, that would have required a purchase of an additional policy. It was not a condition that she had it.

I also know my mother would not have skimped on the insurance when she took out the second charge. If the insurance was supposed to be sufficient, surely halifax should pay the 45k so that the full mortgage was paid off?

What evidence do you have that your mother would not have skimped on the insurance? What evidence do you have that she wanted to take out an additional policy but whoever she chose to provide that additional policy didnt follow through? If they didnt follow through then why didnt your mother query why the premiums were not being paid?
Halifax didnt force her to take out insurance and equally didnt force her not to have it. It was her choice. She didnt take out an additional policy and Halifax are not responsible for that.

haras_nosirrah

Halifax aren't going to give you 45k. You can complain to Halifax and see if they have records about the sale at the time e.g did they offer your mum to increase her insurance but she declined the recommendation. Also was it an advised sale?

It was pre regulation for insurance so that is another problem

Ultimately it was your mums responsibility to ensure she had sufficient insurance. If she increased her mortgage but didn't increase her cover then that was her choice. Maybe she didnt realise but the fact her premium didn't increase should have told her that her cover was just for the original mortgage

haras_nosirrah

irishdonkeys wrote: »

I am not sure why you wouldnt think I would be in a better position

Because the title of your post is life cover reclaim.

Halifax are not going to give you 45k based on your mum telling you many many years ago that she had enough cover for the mortgage. That is an unprovable allegation and their documentary evidence shows your mum did not take additional cover when she increased the mortgage. If you complain about the sale of the insurance they may put you back in the same position as if your mum had not purchased the insurance I.e return the premiums she paid but you would need to return the payout they gave you which I doubt would be in your favour

Thrugelmir

irishdonkeys wrote: »

I also know my mother would not have skimped on the insurance when she took out the second charge.

You have no evidence to substantiate such a claim. Merely opinion. So unless there's a policy in existance that's been missed. Your claim be fruitless and a complete waste of peoples valuable time.