Mis sold decreasing mortgage life cover

Aleks2000

I would appreciate some advice, as just taken out my first mortgage and not sure if I have been treated fairly by a broker. In a nutshell just after receiving mortgage offer from the bank he insisted that we need life cover. I already have one for a lump sum lower than mortgage value so he advised that’s not good enough and i need decreasing policy to protect my mortgage. I agreed and we selected policy including cci cover as well. After flying through health questionnaire In the application form (literally only asked if we are smokers and in general good health) insurer revieved and accepted our application and started charging us monthly payemnts (over £40pm) 3 months before mortgage was actually completed. My question is that a common practice to do something like this and isn’t it mis selling? When i asked my broker he only commented “well at least we’ve got it sorted already” ... as far as I understand terms of mortgage cover I have been charged over £120 for absolutely nothing as if we haven’t got the mortgage completed yet we couldn’t claim from that policy anyway. Also discovered a lot of skipped questions in health questionnaire and again been told that if that’s not a major health issue and no longer ongoing that doesn’t matter. (Why do they ask then?) And also noticed that occupation of my husband has been described on the cover as “warehouse manager” where in fact he is not in a manager role. He is working in a warehouse and sometimes deal with hazardous goods so I thought that would be important to specify the occupation more clearly but again been told that is doesn’t matter as long as it falls in the same occuption cattegory (warehouse). It doesn’t make sense to me at all. I would appreciate advice on what to do with this: cancel policy? Claim as mis sold? Keep? Thank you

dunstonh

In a nutshell just after receiving mortgage offer from the bank he insisted that we need life cover.

"We" indicates there is more than 1 of you. So, there is almost certainly a financial need for life assurance.

My question is that a common practice to do something like this and isn!!!8217;t it mis selling?

Yes, it is common to take out life assurance to cover a mortgage. Why do you think it was missold? Most will start it at exchange of contracts but its up to the individual.

Also discovered a lot of skipped questions in health questionnaire and again been told that if that!!!8217;s not a major health issue and no longer ongoing that doesn!!!8217;t matter.

Minor issues that are not in the last 3-5 years dont get disclosed. The questions should be answered specifically to how they are asked. Skipped questions would occur on multi-purpose applications depending on the cover taken and the answers given to earlier questions.

And also noticed that occupation of my husband has been described on the cover as !!!8220;warehouse manager!!!8221; where in fact he is not in a manager role. He is working in a warehouse and sometimes deal with hazardous goods so I thought that would be important to specify the occupation more clearly but again been told that is doesn!!!8217;t matter as long as it falls in the same occuption cattegory (warehouse).

If you disagree with the occupation classification then it is easily changed with the insurer.

Aleks2000

I think it’s mis sold as started 3 months before exchange of contracts. Don’t understand why i was expected to pay for a cover of mortgage before mortgage was completed if that’s clearer.

dunstonh

It's a choice. I wouldn't do it and cant see the point until exchange of contracts but if it was agreed to do it then fair enough. It doesn't make it missold. Choice, decision and agreement.

If you didnt agree this with the adviser then you should tell them and ask for the premiums back and for it to start at exchange. If you agreed to it then its not missold.

TrickyDicky101

The insurance would still pay out if you died before you purchased the house - the cover is separate from the mortgage.

kingstreet

Aleks2000 wrote: »

I think it’s mis sold as started 3 months before exchange of contracts. Don’t understand why i was expected to pay for a cover of mortgage before mortgage was completed if that’s clearer.

Cover should start from exchange of contracts where you accept legal liability to purchase the property.

This can be months before the mortgage starts.

If one of you dies, the income is gone so no mortgage but the contract to purchase the property is still very much alive so you need the life cover to enable you to honour that.

tacpot12

How much additional cover did you need, and for how long?

How old are you and the other person being insured?