Mortgage PPI

Catareena

Hi - wonder if anyone can assist. I took out my original mortgage in 1996 - was told by the bank that we had to take the ASU cover offered by the bank to get the mortgage. The monthly payment for the insurance was added to the mortgage account and interest charged accordingly. Also when I tried to make a claim on the policy we were told that I would have to be off work for 3 months or more to make a claim. Given that it's so long since I had this mortgage, is it possible to make a claim for missold insurance at this late date. As an aside - as this was a 100% mortgage the bank tagged on an upfront fee of £2000 and also charged interest on this. Any information would be appreciated.

dunstonh

was told by the bank that we had to take the ASU cover offered by the bank to get the mortgage.

That is quite possible in 1996. Many of the lenders in the mid 90s had cross subsidy deals where you got a discounted rate if you bought an insurance via them.

That is allowed as long as the insurance is suitable.

The monthly payment for the insurance was added to the mortgage account and interest charged accordingly.

No it wasnt. No interest would have been charged.

Also when I tried to make a claim on the policy we were told that I would have to be off work for 3 months or more to make a claim.

3 months isnt bad. Most are 6 months and some are 12 months.

Given that it's so long since I had this mortgage, is it possible to make a claim for missold insurance at this late date.

So far, you havent given any reason for complaint. What is it?

as this was a 100% mortgage the bank tagged on an upfront fee of £2000 and also charged interest on this. Any information would be appreciated.

Again, not an issue. MIG was common in the 90s and allowed. It is still possible to see it today, albeit rarely.

Catareena

Hi - thx for the info - bit abrupt but never mind - my complaint is that interest was added to the insurance payment charge - I still have my mortgage statements and the interest for the insurance payments was added separately from the mortgage interest. Sorry - having read my post, I didn't make it completely clear that part of the reason my claim was turned down was they said it was due to an existing medical condition. Thx for answering my other queries though.

dunstonh

Hi - thx for the info - bit abrupt but never mind -

How is it abrupt? You asked questions. I answered them. I didnt use any more words than needed but that is what you try and do on a discussion board as long posts tend not to be read or bits get skipped.

my complaint is that interest was added to the insurance payment charge - I still have my mortgage statements and the interest for the insurance payments was added separately from the mortgage interest.

Who is the lender as that is not normally how it works. In most cases, the insurance, when paid via the lender, has the premium deducted from a sub account that doesnt have interest on it (many lenders call it sub account 99). Or when its monthly premium (rather than an annual premium), the premium is added at the same time the mortgage payment is cleared meaning no extra interest is paid.

part of the reason my claim was turned down was they said it was due to an existing medical condition.

Now that is a stronger complaint reason.