Claiming mis-sold decreasing mortgage cover

bryanmaiden

In 2003 I bought a property as an investment with a mate of mine (we both moved in) using a mortgage with Natwest. In 2005 we switched to a mortgage with Halifax. In 2007 a local broker was able to get us a better rate than Halifax would offer us directly, so he arranged that and sold us Zurich Decreasing Mortgage Cover Plans. I didn't question it at the time as I was happy that we'd secured a better mortgage deal, but from what I know now it seems that this cover was unnecessary and inappropriate; we were both single and neither of us had any dependants.
Would I be able to challenge this now and claim back any of the premiums, and if so do I contact Zurich or the broker?

HappyHarry

bryanmaiden wrote: »

In 2003 I bought a property as an investment with a mate of mine (we both moved in) using a mortgage with Natwest. In 2005 we switched to a mortgage with Halifax. In 2007 a local broker was able to get us a better rate than Halifax would offer us directly, so he arranged that and sold us Zurich Decreasing Mortgage Cover Plans. I didn't question it at the time as I was happy that we'd secured a better mortgage deal, but from what I know now it seems that this cover was unnecessary and inappropriate; we were both single and neither of us had any dependants.
Would I be able to challenge this now and claim back any of the premiums, and if so do I contact Zurich or the broker?

Why did you buy the flat with your mate and not on your own?

If it was that you you couldn't afford the flat on your own, then you wouldn't have been able to afford it if your mate died.

In that situation, mortgage cover sounds like an ideal solution.

McKneff

You didnt question it at the tme, you didnt read the small print, he didnt sell it to you, you bought it. Why do you think you can claim it back. You have had the cover all this time and would have been able to claim if one of you died . Thank god you are boyh still alive,
MOVE ON

dunstonh

but from what I know now it seems that this cover was unnecessary and inappropriate

Why?

we were both single and neither of us had any dependants.

But you were still financially dependent upon each other. So, a clear financial need exists as the other would be landed with the mortgage payments.

Would I be able to challenge this now and claim back any of the premiums, and if so do I contact Zurich or the broker?

There appears to be no wrongdoing based on what you have said. It would be an easy rejection to any complaint made on that basis.

When looking at life assurance, there is one simple question that needs to be asked. Would anyone be financially worse off in the event of my death. If no, then you dont need it. If yes, then you do. In your case, the other borrower would be financially worse off as they would be saddled with the whole debt. They may not even inherit your share of the property depending on how you set ownership up. Your parents could end up owning half and want buying out.