Should I keep the PPI part of TMPP?

drunknmunkey

I have tried my best to research this but can't find the answer, so if anyone is knowledgeable on this I would really appreciate some advice. I understand that there is a PPI element to Total Mortgage Protection Plans.

I previously owned my own business and my wife was an employee. This was a large business where it was easy to indicate what our incomes were. During that time we took out the following with Halifax:

An initial mortgage on our house in 2004 that had TMPP on it.
A remortgage on the house in 2007 which I believe was also sold with TMPP.
Additional borrowing for an extension to the house in 2011 (not sure if it has TMPP).
A separate mortgage for a flat we bought in 2008 (again not sure if it has TMPP).

After being hit hard by the recession the business came to an end a few years ago. I now run two small cash in hand businesses, and along with some rent payments from some property we own, and my wife's state pension, we struggle to make the mortgage repayments.

I am considering attempting to claim for the PPI part of TMPP. However I do wonder if it is worth keeping it given our situation. In turn I wonder if my businesses failed that I would not qualify for any help anyways, so is it even worth keeping the PPI element? But then again perhaps they just make sure your mortgage repayments are covered and don't require evidence of previous income?

I am also not sure on what basis I could claim it if I did - should it have been sold to someone self employed? Neither of us have any recollection of it being explained to us. I'm pretty sure we have all the mortgage documents and I can't see anything that I would class as evidence that we definitely don't have a case.

Any advice welcome, thanks.

BooJewels

I can address some of your points, but I certainly don't want to give any advice, only you can ascertain how to proceed:

drunknmunkey wrote: »

I have tried my best to research this but can't find the answer, so if anyone is knowledgeable on this I would really appreciate some advice. I understand that there is a PPI element to Total Mortgage Protection Plans.

Yes, there is, known as MRC - Mortgage Repayment Cover. You also have life and critical illness cover.

Additional borrowing for an extension to the house in 2011 (not sure if it has TMPP).

It should be easy enough to ascertain - your TMPP is a separate payment from your mortgage repayment - mine both appear on the bank statement as 'HALIFAX', a couple of days apart. You must surely know if you're paying this.

I am considering attempting to claim for the PPI part of TMPP.

You don't claim it, you make a complaint of mis-selling - they either uphold your complaint and make a redress payment or they defend it and you get nowt. But you can certainly make a complaint about the PPI/MRC aspect of the TMPP policy, but only that aspect is repaid.

But then again perhaps they just make sure your mortgage repayments are covered and don't require evidence of previous income?

If you do indeed have one TMPP or more, each one would pay out a pre-determined amount; which is 133% of the qualifying monthly mortgage repayment - your actual income does not come into consideration. If you still have a Halifax mortgage, it pays 133% of your current repayments, if your mortgage is elsewhere or paid off, it pays 133% of the mortgage payment amount at the start of the policy. This is all outlined in the documentation you will have received when taking it out. The policy summary is available to download from the Halifax web site.