Other insurance, sold by financial advisor.

Vixytoria

Hi,

I'm not sure if I'm in the right place so if I'm not please move me along.

We bought a new build in 2009 (I was 18 and my then boyfriend 22, age should be irrelevant but we were admittedly clueless and vulnerable to manipulation), we used their financial advisor who sorted our mortgage and told us we had to have life insurance, critical illness and redundancy cover to obtain the mortgage, she then gave us quotes and we took the policies out then and there, she didn't have any print outs, although they were sent in the post afterwards, she read us the terms and conditions as she had with the mortgage stipulating this need.

Ff to this evening and reading Martin's advice on checking ppi hasn't been mis-sold even when you don't think you've had it, I checked my mortgage documents to see the only insurance I needed to obtain it was buildings.

Reading the financial advisors documents the language used there is a lot of MUST and SHOULD'S but no "you can't have the mortgage without this" including the buildings side of it.

Question is basically have I been mis-sold and if I have is I tough at this point? £50 a month for 5 years (I cancelled the policy during a really tough period and have been living feeling shifty and guilty for no reason) is a lot of money.

They do write in the form that they get £250 for setting up our mortgage and insurances and if we cancel either in the first four years we are liable to pay it, we paid £99 on the day.

Again sorry if I'm in the wrong place, I am trying to be knowledgeable financially but I have a long way to go, be gentle. 😊

dunstonh

Ff to this evening and reading Martin's advice on checking ppi hasn't been mis-sold even when you don't think you've had it, I checked my mortgage documents to see the only insurance I needed to obtain it was buildings.

That may be the case for the lender. However, a lot of mortgage brokers require the purchase of a insurance through them to allow them to give free mortgage advice. That model is allowed as long as the insurance is suitable.

The fact you were buying as a couple means the life assurance was a sensible financial need. Critical illness cover is always popular and for good reason.

Reading the financial advisors documents the language used there is a lot of MUST and SHOULD'S but no "you can't have the mortgage without this" including the buildings side of it.

The mortgage broker documents will focus on financial needs and shortfalls.

Question is basically have I been mis-sold and if I have is I tough at this point?

Possibly. Estate agent and builders own mortgage brokers tend to be least reliable in the chain. General rule of thumb is to not use them but use a local broker/adviser firm instead as they tend to be more reliable. However, there is little you can do about it as you clearly have a financial need for those things and most people take out those things. Your complaint would be measured on financial need basis and not some hypothetical conversation that may or may not have happened (as in it cannot be proven).

They do write in the form that they get £250 for setting up our mortgage and insurances and if we cancel either in the first four years we are liable to pay it, we paid £99 on the day.

That leans towards you not being mis-sold as clawback liability is to offset the fee. So, it would suggest that they gave free mortgage advice because of the insurance.

Vixytoria

Thank you for the speedy reply. I'll let this lie now in my 'not fully grasping the situation at the time' pile. Appreciate your time. ��