Indemnity insurance reclaim

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When I got my first mortgage 23years ago I had to pay an indemnity insurance . I was told it was compulsory. Can I reclaim that?

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  • dunstonh
    dunstonh Posts: 116,669 Forumite
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    When I got my first mortgage 23years ago I had to pay an indemnity insurance . I was told it was compulsory. Can I reclaim that?

    No.

    What made you think you could?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Nearlyold
    Nearlyold Posts: 2,302 Forumite
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    edited 5 July 2018 at 9:26PM
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    MIG (Mortgage Indemnity Guarantee) protected the lender in the event that you failed to pay the mortgage, where following subsequent repossession, the property had to be sold for less than the amount required to clear the outstanding mortgage.

    You were told it was compulsory because it was compulsory at the time with many lenders for lending above a certain loan to value, you could of course have avoided the charge by a) putting down a larger deposit b) buying a cheaper house (so the LTV was below the MIG threshold c) finding a lender who wouldn't charge a MIG or d) not buying a house until such time as you had sufficient deposit to avoid the need for a MIG policy.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    When I got my first mortgage 23years ago I had to pay an indemnity insurance . I was told it was compulsory. Can I reclaim that?
    Since the insurance protected the lender, not the customer, it will never refunded to you. Not every insurance is PPI and not even all PPI was mis-sold.

    The fact is that the insurance WAS compulsory in order for you to get a high LTV mortgage. Therefore, it wasn't mis-sold to you in any way.

    Sorry.
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