Was I mis-sold

SouthUKMan

Hi. Can you please advise if you think I was mis-sold both mortgage insurance and lifetime protection? In 1997 I took out my first mortgage (with Chelsea building society) arranged through Hambro Countrywide. I was in my early 20s, single, with no dependents, in good health and in full-time employment. I was also naive about the mortgage process.

1) Through Hambro, I was sold a mortgage care package with Guardian Insurance. The 'mortgage benefit' was £240 + 'associated costs' (whatever these are!) of £25, making a monthly 'total benefit' of £265. For this I paid a monthly premium of £17.22.

2) Also through Hambro at the same time, I was sold lifetime protection which provided death, critical illness and income protection cover. This was all for a monthly premium of £15 (which included a small monthly premium protection fee). Just out of interest, this premium had nearly tripled by the time I cancelled the policy 12 years later!

As you can see, I was advised to buy 'lifetime protection' AND 'mortgage insurance' at the time of taking out my mortgage - despite being 24 years old, single, healthy, with no dependents and in full-time work. The broker made it sound essential and normal. I have long suspected that I was mis-sold both schemes - but it was only today that I found all the old paperwork.

Quite simply, had I known then what I know now, I wouldn't have taken out mortgage insurance, and I wouldn't have opted for (what I now know is) the most expensive 'lifetime protection' that the broker could have signed me up to. Do you think I have a case for claiming mis-selling?

dunstonh

As you can see, I was advised to buy 'lifetime protection' AND 'mortgage insurance' at the time of taking out my mortgage - despite being 24 years old, single, healthy, with no dependents and in full-time work.

Despite what? My youngest income protection claimant was about 31 and youngest CI cover claimant 25. Both in perfect health until they were not. That is the thing with your health. It is good until it isnt.

Quite simply, had I known then what I know now, I wouldn't have taken out mortgage insurance, and I wouldn't have opted for (what I now know is) the most expensive 'lifetime protection' that the broker could have signed me up to. Do you think I have a case for claiming mis-selling?

They were not independent. So, they could only sell from their own range. Their range was typically expensive (like most tied sales forces). However, its a free market to price as you wish and that does not make it a missale.

Nothing you have said suggests mis-sale. Doesnt mean you were not but it was 8 years prior to regulation and it is normal to have insurances with mortgages. The fact you used an expensive distribution is not a reason for complaint.