Life Insurance mortgage fee

dunstonh

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?

You both have a debt that you are equally liable on if the other disappears (for whatever reason). Whilst you can choose to insure to a lower amount, best advice is to clear the debt. Especially as the difference for most people under the age of 35 is likely to be pennies.

You have a split on the mortgage and probably on maintenance (such as when boiler needs replacing) and the bills. With one of you gone, the other will still be responsible for 100% of the other.

Plus, the lender may not view your affordability criteria as 50/50. One of you could be a higher earner. e.g. if your brother accounts for 70% of the affordability and you 30%, then if you clear 50% of the mortgage it reduces your options in future.

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?

Income protection providers tend to have pre-determined job roles which the adviser should match up. The title of that job may not match the title of yours. Although the role should be the closest match.

What is your job (at point of application)?
What is it down as on the insurance?

Carl2510

At the time my brother was a section leader and I was a home shop picker at ASDA, the role he’s put us down for us over 75% office work when it’s clearly not.

Weighty1

Carl2510 wrote: »

At the time my brother was a section leader and I was a home shop picker at ASDA, the role he’s put us down for us over 75% office work when it’s clearly not.

I'm guessing your cover is with Legal & General?

By inputting you work for at least 75% of your time in an office based environment L&G offer the best income protection rates they do, however as you say that's clearly incorrect. That wouldn't necessarily give you grounds to cancel as it's something you should have checked when first applying but it certainly doesn't look good for the adviser cos he's failed to KYC (know your client) and informing L&G of the trust occupation will cause a significant increase in cost as they aren't normally positioned to offer decent income protection rates to more manual based occupations, the much prefer applicants who are office based, lower risk roles.

dunstonh

Is this adviser an agent of L&G? L&G has a large salesforce, often based in estate agents. If so, then L&G take on the complaints made against their advisers. Not the adviser or estate agent themselves.

With the occupation not correct and an attempt to bill you in a way that does not sound compliant with the consumer regulations act 2015, I suspect L&G would likely force the fee to be waived.

Carl2510

The Advisor was based in the estate agents building but part of Mortgage Advice Bureau, I was asked if I wanted to use there guy, and naive and being a new home owner thinking it would all be done professional i agreed but clearly all they was after was my money which I had to pay a fee upfront and then he’s tied me to a fee for 4 years.

Carl2510

It’s L&G who are trying to get the money from Mortgage Advice Bureau who are now trying to get it from me.

dunstonh

Carl2510 wrote: »

It’s L&G who are trying to get the money from Mortgage Advice Bureau who are now trying to get it from me.

That is correct. It is what happens with a clawback.

However, some estate agents are agents of the insurer and its the insurer that handles any complaints. Not the estate agent.

I was asked if I wanted to use there guy, and naive and being a new home owner thinking it would all be done professional i agreed but clearly all they was after was my money which I had to pay a fee upfront and then he’s tied me to a fee for 4 years.

The general rule of thumb is to never use an estate agent broker unless its a local independent agent (they tend to use local independent advisers). The chains have a bad reputation.

You need to raise a complaint to MAB. State that asking you to pay for a fee due a commercial arrangement between MAB and the insurer and you are not a party to is in breach of the consumer regulations act 2015. Only if a fee was specified as a monetary amount at the start and commission was taken to the amount of the fee would it be allowed.

The act is relatively new and whilst some compliance companies have notified their firms that they cant do commission clawbacks like this any more, some are still doing it.

Carl2510

You need to raise a complaint to MAB. State that asking you to pay for a fee due a commercial arrangement between MAB and the insurer and you are not a party to is in breach of the consumer regulations act 2015. Only if a fee was specified as a monetary amount at the start and commission was taken to the amount of the fee would it be allowed.

I’ve not said I’m going to complain to the estate agent I have spoken and emailed to MAB and I’m now just waiting a reply. Could you please elaborate on what you mean by “only if the fee was monetary amount at the start and commission was taken to the amount of the fee would it be allowed”

Thanks.

Carl2510

Carl2510