Do we have any claim on our old mortage company

coalminer72

We took a mortgage out in 1976 with a well known Building Society. However when we completed the terms of contract we were informed that we would have to have Buildings insurance through them, which we did not want to do but they were insistent if we wanted the mortgage. This was added to the mortgage each year. With all the talk about mis sold insurance we wonder if we can claim anything against the company as we did tell them we would prefer to shop around and obtain a more competitive price with our own insurance. We did eventually get our own insurance when the government outlaw this practice. The mortgage is well paid off now and I doubt we can find the paperwork if it is required ?

littlemissbossy

I had the same thing happen to me but more like mid 90's time.

I remember them telling me that I had to have their insurance and me knowing that it was very expensive, but being in my early twenties and not savvy or confident enough to challenge them.

I bet I can find the paperwork too.

dunstonh

However when we completed the terms of contract we were informed that we would have to have Buildings insurance through them, which we did not want to do but they were insistent if we wanted the mortgage.

Quite normal for 1976 and still today lenders insist on buildings insurance being required for mortgages. Until sometime in the 2000s they were allowed to insist on their own product. Even today, whilst they cannot insist on their own product, they can make make sure what you have meets their criteria. Most no longer do but a few still make periodic checks.

With all the talk about mis sold insurance we wonder if we can claim anything against the company as we did tell them we would prefer to shop around and obtain a more competitive price with our own insurance.We did eventually get our own insurance when the government outlaw this practice.

No. Rules do not change retrospectively (in general). When the FSA (not the Govt) changed the rules, it applied from that date onwards.

coalminer72

Thank you Dunstonh for your response, I see your a Financial advisor so obviously know what you are talking about. I'm just sorry it looks like we have no claim.

[Deleted User]

coalminer72 wrote: »

I'm just sorry it looks like we have no claim.

It's important to note that Building Insurance is not PPI and would be unlikely to be mis-sold in the same manner.

Nasqueron

Indeed, buildings insurance is a vital policy - if your house falls down or is blown up you have to pay for the entire rebuilding which could cost hundreds of thousands hence why it's mandatory.