Paying For Mortgage Cover For 7 Years Without a Mortgage!

Techology

I've only just discovered I've been paying £16.99 a month to Legal and General (MI C/L) for 'Mortgage Repayment Protection'.

The mortgage cover started around August 2004 and continued to be paid until September 2014 when Legal & Gen stopped the Direct Debit. That's what brought it to my attention.

The thing is, the mortgage was paid off and closed in September 2007. Do I have a case to reclaim the last 7 years worth of payments do you think?

Thank you for any pointers about my next step.

Insider101

Techology wrote: »

I've only just discovered I've been paying £16.99 a month to Legal and General (MI C/L) for 'Mortgage Repayment Protection'.

The mortgage cover started around August 2004 and continued to be paid until September 2014 when Legal & Gen stopped the Direct Debit. That's what brought it to my attention.

The thing is, the mortgage was paid off and closed in September 2007. Do I have a case to reclaim the last 7 years worth of payments do you think?

Thank you for any pointers about my next step.

You can ask, but I'd do it nicely. Forgetting to cancel your payments when the mortgage was repaid is not grounds for complaint against the insurer. But if you could never have actually claimed on the cover then they may do it as a gesture of goodwill.

roonaldo

Techology wrote: »

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The thing is, the mortgage was paid off and closed in September 2007. Do I have a case to reclaim the last 7 years worth of payments do you think?

It's your fault for not cancelling it. But if you are mortgage free, provide them with proof you have no mortgage since 2007 then they may refund as a gesture of goodwill.

dunstonh

The thing is, the mortgage was paid off and closed in September 2007. Do I have a case to reclaim the last 7 years worth of payments do you think?

Not normally, no. You can ask but it is your responsibility to ensure what products you choose to buy continue to be useful or not.

If the policy is life assurance, then you have no hope as its not linked directly to a mortgage. It would pay out whether you had a mortgage or not. If it is MPPI, then it would depend on whether a mortgage was needed or not to pay out (it may just work like a budget form of income protection that pays out whether there is a mortgage or not).

You wont know if you dont ask them but you would be reliant on a lot of goodwill from them.

Techology

Thank you for your clear replies. The policy is a 'Term Assurance Policy' and states it's for 'Mortgage Loan Protection' naming both the lender (Chelsea BS) and the amount.

I moved house, so the mortgage was cleared as I mentioned, but I did subsequently take out another mortgage (but not connected in any way with the original by house or lender).

My thoughts were that supposing I needed to make a claim on it after I moved home, would Legal & Gen turn it down having found out that the mortgage had been cleared? I.e. would the policy have been deemed void because it no longer applied to the same lender (or even house)?

Fully understand it was my fault for not spotting this. The only reason it came up on the radar at all was because my wife asked why the payment had stopped. And that made me question why we were paying it at all.

Insider101

Techology wrote: »

Thank you for your clear replies. The policy is a 'Term Assurance Policy' and states it's for 'Mortgage Loan Protection' naming both the lender (Chelsea BS) and the amount.

I moved house, so the mortgage was cleared as I mentioned, but I did subsequently take out another mortgage (but not connected in any way with the original by house or lender).

My thoughts were that supposing I needed to make a claim on it after I moved home, would Legal & Gen turn it down having found out that the mortgage had been cleared? I.e. would the policy have been deemed void because it no longer applied to the same lender (or even house)?

Fully understand it was my fault for not spotting this. The only reason it came up on the radar at all was because my wife asked why the payment had stopped. And that made me question why we were paying it at all.

This isn't PPI, it's life cover. And it wouldn't usually be invalidated by the mortgage having been switched...

dunstonh

Thank you for your clear replies. The policy is a 'Term Assurance Policy' and states it's for 'Mortgage Loan Protection' naming both the lender (Chelsea BS) and the amount.

That is not PPI. It is life assurance. It has no direct link to the mortgage and many people maintain it after they repay their mortgage or switch a mortgage to another lender.

My thoughts were that supposing I needed to make a claim on it after I moved home, would Legal & Gen turn it down having found out that the mortgage had been cleared? I.e. would the policy have been deemed void because it no longer applied to the same lender (or even house)?

First of all, you would be dead. So, it would be someone else making a claim. And yes, they would pay out as you are dead. It has no link to the mortgage. Legal & General are not a mortgage lender. They are life assurance company.

Techology

Thank you for the replies. What's PPI?

dunstonh

Techology wrote: »

Thank you for the replies. What's PPI?

Payment protection insurance. Not life assurance.