Mortgage Indemnity payment Mis-sold????

MrSchnauzer

Can anyone advise me please as to whether this was wrong. I had to pay mortgage indemnity on my mortgage, which I was told at the time was basically an insurance for the building society which I had to pay for them in order to get my mortgage and that it was a one off payment (it was just under £700) and was to protected the money they had lent in case the house had to be repossessed. The mortgage was arranged through an agent who stuck this indemnity on to the mortgage and therefore we have been paying interest on it ever since.

Thank you for any help.

dunstonh

Mortgage Indemnity payment Mis-sold????

It cant be. It was a mandatory requirement for people who did not have a big enough deposit. Your choice was to put a bigger deposit down or pay MIG. It was not sold to you and cannot be mis-sold.

[Deleted User]

MrSchnauzer wrote: »

was to protect the money they had lent in case the house had to be repossessed.

Yes, you were judged a greater risk and had to pay this is in order to get a mortgage.

MrSchnauzer wrote: »

The mortgage was arranged through an agent who stuck this indemnity on to the mortgage and therefore we have been paying interest on it ever since.

The alternative was to save for a larger deposit.

You cannot complain this was "mis-sold" to you.

magpiecottage

Taking the policy was an exercise of legitimate commercial judgement by the lender.

The alternative to adding it to the loan was to pay it up front or to raise a larger deposit.