Remortgage and Life insurance

Harrison123

Hi I am looking for some advice.please
I remortgaged a few years back with Lloyds Tsb and they insisted I took out their Scottish Widows life insurance to complete the application. I told them my employer already covers my life insurance ( Local Council) 3 x salary and would cover cost of property-but they said I could not progress with the remortgage application unless I bought theirs. Is this legal? Can someone direct me to guidance/law relating to this perhaps?

[Deleted User]

Harrison123 wrote: »

they said I could not progress with the remortgage application unless I bought theirs. Is this legal?

Yes, it was perfectly "legal" for them to insist on you taking their Insurance, usually in return for "free" mortgage advice.

Since the insurance would pay out in addition to your work related benefits, I can't see you getting anywhere with a mis-selling complaint (or at court).

How many years ago was "a few"?

safestored4

Do you really believe that borrowers should be entitled to impose the terms under which they are lent money? Lloyds were lending you their money and were quite entitled to set out the conditions under which they were prepared to lend it to you. They were open about this and nothing appears to have been hidden. You in return were free to decline to accept their terms and borrow the money from elsewhere. You chose not to.

Harrison123

about 3 years ago

dunstonh

Is this legal?

Yes it is. However, Lloyds stopped requiring compulsory life assurance on mortgages in the late 90s. Except on commercial borrowing.

So, you would be making an allegation that would require evidence from you to support it. Otherwise Lloyds will just say that they have no compulsory requirement.

Death in service is discretionary and is aimed at replacing short-term income and some lost pension entitlement. It is not meant for debt repayment. It is usual to disregard DIS when working out shortfall on debt provision.