Mortgage protection.

Ms_Mop_123

Was talking to my daughter today about mortgages, I told her that when we took our mortgage out in 1974 we were told that we had to take out mortgage protection (life insurance) otherwise we couldn't get a mortgage. She's told me that's PPI and we should see about making a claim, is she right?

[Deleted User]

No.

Life insurance isn't PPI.

Ms_Mop_123

Thanks, it's just that she says you don't have to take out life insurance when you get a mortgage now, but at the time we were told we had to by the building society.

-taff

They were allowed to do that then.

[Deleted User]

Ms_Mop_123 wrote: »

Thanks, it's just that she says you don't have to take out life insurance when you get a mortgage now, but at the time we were told we had to by the building society.

Things were different then.

It was ok to smoke in the doctor's waiting room, but they're not so keen on that now.

Nasqueron

What you need to remember is 2 things


1) Simply having insurance isn't wrong, only if it was miss-sold
2) If a lender insisted you have some cover (such as life insurance) or no mortgage it categorically CANNOT be miss-sold as you have a choice of loan + insurance or go elsewhere


PPI was a product of the 80s (mostly mid to late 80s), you were not sold PPI in 1974, you were sold life insurance, that is not PPI, that protects the remaining borrower if the other died by paying off the mortgage.


You were not miss-sold, move on and be glad you never had to claim on this policy.

Ms_Mop_123

Thank you all for your prompt replies, I will tell my daughter what's been said on here. She might be a bit disappointed though, she said she wanted 10% of anything we got.

dunstonh

Ms_Mop_123 wrote: »

Was talking to my daughter today about mortgages, I told her that when we took our mortgage out in 1974 we were told that we had to take out mortgage protection (life insurance) otherwise we couldn't get a mortgage. She's told me that's PPI and we should see about making a claim, is she right?

She has told you wrong.

Life assurance is not PPI. Only PPI is PPI. Life assurance is life assurance.

Until the late 90s, it was compulsory to have life assurance as a condition of borrowing. It is unusual nowadays but does still happen sometimes on commercial borrowing.

She might be a bit disappointed though, she said she wanted 10% of anything we got.

To avoid future disappointment, you may like to tell her car insurance and house insurance is not PPI either.

Ms_Mop_123

Dunstonh....thank you for your reply. When I put she wanted 10% of any monies we received with was put in jest, I tried to put a laughing emoji but I had to edit the post because it didn't appear properly when posted. Of course she knows that car and house insurance is not PPI.

I can understand why she thought we may be entitled to something back. Lots of PPI were miss-sold, people told they had to have it, just like we were told we had to have mortgage protection. Seems from what you put it was compulsory when we took our mortgage out, unlike it is today.

I did get a little excited about the prospect though of claiming something.....I'd better stop dreaming about the world cruise now.

dunstonh

Of course she knows that car and house insurance is not PPI.

And the same applies to any other insurance that is not PPI. Such as life assurance.

Lots of PPI were miss-sold, people told they had to have it, just like we were told we had to have mortgage protection. Seems from what you put it was compulsory when we took our mortgage out, unlike it is today.

But it is not PPI. So, saying that lots of people were missold PPI. So, I am going to complain about my life assurance has as much in common as saying lots of people were missold PPI so I am going to complain about my house insurance.

Compulsory insurance still exists today and is allowed. It is not a valid complaint reason. Lenders still insist on buildings insurance as a condition of borrowing. A very small number still insist on life assurance as a condition. That is not a missale reason with PPI or any other type of insurance. It is if you are lied to over it being compulsory when it was not. However, it is also one of the weakest complaint reasons going as there is almost certainly no evidence to back the allegation up.