Forced to take out Life Insurance with Mortgage

MC74

Hi
Hope you can help. My partner took out a mortgage with Halifax in late 1980's, a single man with no dependants, and he is still single with no dependants. However, he was told that he had to take out a life insurance policy to cover the cost of the mortgage or they would not allow the loan to go forward, he was even told which company he had to go with.

He was very unhappy about this as at the time he could have covered the cost of the house with his savings, he was in a secure job (HM Forces) and like I say no dependants of any sort. Does this come under PPI, he is still very unhappy about being forced to take out this policy which ran the length of the mortgage, and would have benefited no one. ( I was angry enough when the Halifax forced me to Pay a one off sum of £100 for a policy so they could get their money if I died! )

Any help comments greatly appreciated.

ACG

Back in the day life insurance was a requirement of getting a Mortgage with some lenders. This sounds like it would fall under that and so is not a miss sale as it was part of the "deal". He was not forced to do anything, he could have gone elsewhere or not taken the mortgage out.

Also you say your partner is still single.... surely that is a contradiction?

Thrugelmir

MC74 wrote: »

He was very unhappy about this as at the time he could have covered the cost of the house with his savings,

Might as well have done then. Seems as if there was a real choice available at the time. No one forced him to do anything.