Is mig a ppi

Spacemates

Hi everyone, we had our first mortgage back in 2004 through a company called SPML ( southern Pacific ) we only had the mortgage for two years before moving it, at the time of signing up we were told the mortgage would not be accepted unless we took out something called MIG the person told us it was to be sure our mortgage payments were protected if we could not pay, fearing we would not get a mortgage anywhere else we reluctantly agreed, that insurance was added to the mortgage because we were told that was the only way and we finally accepted.
Within the first year my partner who was the one working became seriously ill so she could not work for months we attempted to ask for the help of the insurance we had been told would protect us, only to be told we were not eligible for cover the reason we cannot recall but it left us shocked and struggling.
We purchased our right to buy council house.

Anyway we are finally getting into reclaiming charges and fees so we requested all the info relating to our mortgages and bank accounts, because of the info we received back from SPML we realised that we had this insurance, I have spent the day looking into the commons and the broker Hadenglen and I was shocked to read all the negative comments about them, I would like to get the charges back and if possible the money we are still paying for a useless /pointless insurance, I was going to moan at the broker for him selling the policy, but I remember him saying it was the mortgage company who insisted we get the policy.
I was trawling through this information they sent me and every where where the underwriters names and details should be they have been erased or covered up so my paperwork has been altered before being copied and sent to me, why would they do that? What are they hiding it for?
One other thing the statements I received show the I am in credit £51 even though I remortgaged back in 2006.
Sorry about the speech I have more to say but looking at what I have put I will think about compacting it a little.
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antrobus

Is mig a ppi?

No.

A Mortgage Indemnity Guarantee (MIG) covers the lender not you.

[Deleted User]

Spacemates wrote: »

Within the first year my partner who was the one working became seriously ill so she could not work for months we attempted to ask for the help of the insurance we had been told would protect us, only to be told we were not eligible for cover the reason we cannot recall but it left us shocked and struggling.

The reason you "cannot recall" was that the MIG covered the lender in case you couldn't pay, not you. The reason you were told this was compulsory was that otherwise the lender would not grant you the mortgage. This would have been because you were deemed more likely to default.

It's all explained here;
http://www.home.co.uk/guides/mortgage_glossary.htm?mig

You cannot complain about mis-sold MIG.

RADDERS

A Mig is used when customers have a high loan to value and it covers the mortgage company on the amount over a certain percentage, normally 80%.
For example if the house you were purchasing was £100,000 and the you wanted a 95% LTV the Mig would cover the £15,000 above the 80% so if the property was repossessed the mortgage lender could claim on the Mig for the £15,000.
Hope that explains it a little better for you.

Goldiegirl

It's not correct to say you 'agreed' to have MIG.

It wasn't optional - it would have been a condition of having the mortgage.

[Deleted User]

For some reason the OP has not only duplicated his initial post but has created another account to do so;
http://forums.moneysavingexpert.com/member.php?u=259605

Goldiegirl

It's like an Eu referendum thing - keep on until you get the reply you want!:rotfl:

Spacemates

? Hi I have not opened another account I have not been on in a while, this time it said sign in using Facebook so I did, one post was late last night that was still on my screen this morning so I thought it had not gone through.

dunstonh

Is mig a ppi

No. MIG is MIG. PPI is PPI.

Within the first year my partner who was the one working became seriously ill so she could not work for months we attempted to ask for the help of the insurance we had been told would protect us, only to be told we were not eligible for cover the reason we cannot recall but it left us shocked and struggling.

MIG has nothing to do with personal protection. So, not sure what you should be shocked.

I was trawling through this information they sent me and every where where the underwriters names and details should be they have been erased or covered up so my paperwork has been altered before being copied and sent to me, why would they do that? What are they hiding it for?

It has nothing to do with you. It is not for your benefit.

Spacemates

I was shocked because it cost us just under £3000 added to the mortgage and we had all the paperwork from the broker showing what protection we were entitled to in a glossy file from hadenglen limited it was useless when we needed it, after spending the day reading all about Hadenglen on this site I can now see it was a scam, the MIG I asked about first of all, was required but the cost increased and paid to the broker by spml he came away with £6000+ on a right to buy mortgage we needed for a £33000 house, over the phone he told us we were accepted but only if we took out the what he said was Mig, back then we had not heard of either mig or ppi we just wanted a mortgage,
Any way after reading the topics on this site relating to Hadenglen it turns out after both the company and its director (first of its kind) received huge fines from fsa they closed down, so we have know one to ask about it.
That led me to mention the part about why the underwriters details have all been covered over before being scanned and sent on every form, one topic on another site mentioned the same thing and pointed at the underwriters being liable because they (who were also fined) allowed Hadenglen to to do this.
Either way I will now leave it.

dunstonh

I was shocked because it cost us just under £3000 added to the mortgage

Many of us will remember when virtually all mortgages had MIG. It only ended in the mid 90s with most mainstream lenders.

it was useless when we needed it

It was not for your benefit. You never needed it. It was to protect the lender. Not to protect you.