Life Insurance mortgage fee

Carl2510

Hi, I’ve recently cancelled my life insurance, and used a broker to help me with a new policy I was under the understanding my current one was only for 2 years before I would occur any fees by the letting agent mortgage advisor who did it for me I couldn’t cancel or I’d incur a fee I’m now being told it’s actually 4 years even though I only got a mortgage out for 2 years fixed. They have sent me the copy of the agreement with my signature and brothers as we are join owners yet they haven’t signed it. And the guy who did it has now left the company. Any ideas on what I can do? Thanks.

Quentin

Whenever you are unhappy with your mortgage advisor the route to go down is a complaint in line with their complaints procedure


Then if you are not happy with the reply you can escalate to the FOS for their adjudication at no cost to you


(If you signed the agreement, what makes you think it's wrong??)

Carl2510

They haven’t signed it. It shows my sig, my brothers sig and then no sig on the line for arrangers sig will that mean anything?

Quentin

No doubt they will pursue you (unless your complaint is successful)

Carl2510

By the looks of it I should be able to just re open the policy and carry on. So might just have to do that.

dunstonh

If it was a fee agreed with commission offset with commission equalling the fee, then that is allowed and considered fair (and actually works out to be good value much of the time).

However, if there was no specified fee or commission was taken at a higher amount than the fee then Brokers/advisers used to be able to have commission clawback agreements but following the Consumer regulations act 2015, this would now be considered an unfair contract event.

Commission payments are an agreement between the provider and the seller. You are not party to that amount and the amount taken can vary. As you are not party to that agreement, you are not liable to pay it unless it is a fixed fee commission offset as mentioned.

Carl2510

Is there any way I can put a picture f the agreement on here for you to look at?

Carl2510

I definitely feel I was taken advantage of as a new home owner with the estate agents pushing me onto there mortgage advisor. Even though it’s a join montage between me and my brother he put us both down for the full mortgage loan for life insurance so instead of 50/50 split on the loan of 108K he put us down for 108K each.

Quentin

Carl2510 wrote: »

Is there any way I can put a picture f the agreement on here for you to look at?

Host it on an image hosting website eg Dropbox

Then post the link to the image

dunstonh

Carl2510 wrote: »

I definitely feel I was taken advantage of as a new home owner with the estate agents pushing me onto there mortgage advisor. Even though it’s a join montage between me and my brother he put us both down for the full mortgage loan for life insurance so instead of 50/50 split on the loan of 108K he put us down for 108K each.

The general rule of thumb is to never use estate agent brokers unless its a small independent (independent estate agents tend to use local firms/advisers rather than salesforces linked to an insurer).

However, it does seem to appear that you have a financial need for life assurance and going to the full amount of the debt would be considered normal. It would be strange if you only covered half of it.

Carl2510

But it’s a joint mortgage, so me and my brother split 50/50 so there surely is only need for me to be insured for half so 54K and my brother 54K? Also going through the paperwork the advisor has put me down incorrectly for my job role therefore if I was ever to make a claim for income protection it would of been void surely?