Mis Sold Life Insurance

Arian2018

Hi, wonder if anyone could offer any advice, please?


We recently successfully reclaimed some money from HSBC, after we had been paying for a packaged current account when we didn't need or want one. We were told we had to have the account in order to have the mortgage.


Since then, we've started thinking about a Life Insurance policy that my husband was told he had to take out, in order to take out a previous mortgage with HSBC. Once again, he was told that he had to take out the Life Insurance policy, in order to have the mortgage.


Was this mis sold, as he wasn't looking for Life Insurance, and just went along with it in order to get the mortgage?


Does he have cause to ask for a repayment?


Thanks in advance.

paddyandstumpy

It depends on the conditions of the mortgage.

It’s not unusual for a lender to insist on life cover for the duration of the lend.

Quentin

Check the wording of the mortgage offer to see if life insurance was indeed a condition to get the loan

Arian2018

Thanks for your quick reply. Whilst Life Insurance isn't a bad thing in itself, HSBC insisted that my husband took out this policy in order to get the mortgage. It wasn't an option to get Life Insurance with another provider - it had to be with HSBC. Surely, this was mis sold?

dunstonh

Since then, we've started thinking about a Life Insurance policy that my husband was told he had to take out, in order to take out a previous mortgage with HSBC.

Banks did require life assurance on mortgages until around 1998-2007 (they phased the mandatory requirement out over a period). However, you do still see it frequently on commercial borrowing.

Was this mis sold, as he wasn't looking for Life Insurance, and just went along with it in order to get the mortgage?

If it was required, it was not missold.

It wasn't an option to get Life Insurance with another provider - it had to be with HSBC. Surely, this was mis sold?

Doesnt sound missold. Knowing the year in question would help though.

ACG

It was miss sold if you were told you had to have it but it was not a condition of the Mortgage (based on what you have said).
It was not miss sold if you had to have life insurance with HSBC as a condition of the mortgage.

Check your original mortgage offer (not the renewals if you ever renewed with them).