Mortgage Maximum Advance lnsurance

Raspberry_Blower

In 1990 I took out a Repayment mortgage with Nationwide where I borrowed 95% of the purchase price, this meant that for the first year of repayments an insurance premium was added to the repayments as my deposit was so small. I believe this insurance was to cover any losses the Nationwide may suffer should the property then be repossessed at a later date and sold at a loss.
In 1995, I sold the property at less than I paid and subsequently had to pay a figure in the region of £6,000 to clear the Repayment mortgage. I then took out an Interest only mortgage again with Nationwide for the new property.
My question is this, as I was paying the insurancece premium should I not have also been covered from any losses subsequently suffered and therefore not have had to pay the £6,000 to Nationwide ? Also, as I was taking out a new mortgage with them could this £6,000 not have been added to my new mortgage ? Would this qualify as a possible PPI claim against Nationwide as this insurance was not voluntary ?
Thanks for any help received

[Deleted User]

No. The indemnity policy was to protect them. It wasn't to prevent house price drops.

Nearlyold

Raspberry_Blower wrote: »

In 1990 I took out a Repayment mortgage with Nationwide where I borrowed 95% of the purchase price, this meant that for the first year of repayments an insurance premium was added to the repayments as my deposit was so small. I believe this insurance was to cover any losses the Nationwide may suffer should the property then be repossessed at a later date and sold at a loss.
In 1995, I sold the property at less than I paid and subsequently had to pay a figure in the region of £6,000 to clear the Repayment mortgage. I then took out an Interest only mortgage again with Nationwide for the new property.
My question is this, as I was paying the insurancece premium should I not have also been covered from any losses subsequently suffered and therefore not have had to pay the £6,000 to Nationwide ? Also, as I was taking out a new mortgage with them could this £6,000 not have been added to my new mortgage ? Would this qualify as a possible PPI claim against Nationwide as this insurance was not voluntary ?
Thanks for any help received

Your first paragraph pretty accurately describes what the MIG covered, so knowing that, its not clear why you think the policy should cover you for a completely different scenario.

You have no hope whatsoever of getting anywhere with a complaint on the basis you outline I'm afraid.