Initial mortgage payments 20 years ago!!!

gizmo66

I have not looked at claiming any PPI but can remember an amount being added to our original mortgage debt, which was some kind of insurance that we had to pay to ensure the bank would get there money back if we defaulted on the loan. This was in 1989, I vaguely recollect a similar amount 9 years later when we moved on. Does anyone know what this was for and is it something we could have reclaimed. We had to add it to the mortgage at the time as we had no savings and wee struggling to get the deposit together.

If anyone can throw some light on it, I would be really grateful.

betmunch

Sounds like a Higher Lending Charge or Mortgage Indemnity Guarantee.

The lender would claim on this insurance in the event of repossessing you and not covering the debt when the house was sold.

It would have been a condition of the mortgage rather than a mis-sold policy.

Can't see this going anywhere I'm afraid

kingstreet

You wanted to put down a small or no deposit.

In return, the lender wanted additional security in the form of mortgage indemnity guarantee insurance.

The premium was paid by you. You got no benefit from the insurance as, if the insurer paid out to the lender, the insurer had subrogation rights to chase you for the loss.

At the time it was perfectly acceptable for lenders to require this on the excess over 75% the usual "maximum" loan.

You have no justification for demanding the return of the premium.

amnblog

The MIG only slightly less harmful than the Russian Air Force Jets of the same name.


Legitimate at the time, now sadly an avenue of profit cut off to the Lenders.