mortgage ppi

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
10 replies 1.2K views
rjbvrjbv Forumite
4 Posts
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Hi,
i was advised that i needed to take out an insurance policy or my mortgage provider would not proceed with my mortgage application, however I had a guarantor as my earnings at the time of application were not of a level acceptable to my lenders. My question is as I had a guarantor who would have covered the cost was this mis-selling as whatever happened the mortgage would have been paid, the policy therefore being a redundant safety net. I have not yet made a claim, but would be interested to find out if this would be a valid claim reason and still have all the relevant paperwork. in a folder, in a box, in a cupboard, somewhere.
Thanks in advance.

Replies

  • [Deleted User][Deleted User] Forumite
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    So, rather than pay an insurance premium, you think your guarantor should have paid your mortgage if you had fallen on hard times?

    I'm sure your poor guarantor would feel differently.. :(
  • societys_childsocietys_child Forumite
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    Needing a guarantor shows you had need of a policy. If it was a requirement of the lender, then it can't have been mis-sold.
  • SonOfSonOf Forumite
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    however I had a guarantor as my earnings at the time of application were not of a level acceptable to my lenders.

    That seems like good justification to have MPPI.
    My question is as I had a guarantor who would have covered the cost was this mis-selling as whatever happened the mortgage would have been paid, the policy therefore being a redundant safety net.
    No. That is not a valid missale reason. Indeed, it is actually a stronger reason to have the insurance.
  • rjbvrjbv Forumite
    4 Posts
    Hi,
    just looking for genuine advice as I had no intention of allowing my guarantor to pay had things gone south, my partner who was not on the original mortgage could have taken up the slack to prevent this - or I could have sold a kidney. However the mortgage broker did not ask about other policies, in the event of sickness my employer provided full salary sick pay for up to 12 months at the time of application due to length of service. I also had, and still have, another policy covering injury, hospitalisation, death which would cover the mortgage costs and more.

    My point is that even removing the guarantor from the equation I would have been able to cover the amount of the mortgage in a number of ways due to existing policies or external income.

    Also given the massive exposure surrounding PPI and number of cold calls that have been received I just thought it was worth asking a question.

    Any constructive answers welcome.

    Also thanks for the private message but I'm uncomfortable responding to messages from people that have spelling issues. They remind me of emails from lawyers in Uganda whose clients have died leaving millions and who wish to share this with me by providing bank details and transferring it to me rather than have it unclaimed.
  • rjbvrjbv Forumite
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    Plus for those about to shoot me down and say why was this other external income not declared to negate the need for a guarantor, it's because my guarantor was happy to proceed as guarantor in the knowledge that my partners income was sufficient to prevent them having to pay up.

    Personal relationship/family politics. Never you mind.
  • [Deleted User][Deleted User] Forumite
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    Do please ignore any private messages about this...

    Other than that, I have nothing additional to add to my response at post #2.
  • -taff-taff Forumite
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    12 months sick pay is a good reason for loans and credit cards but not for a mortgage.
    Your original post asked if having a gurantor was a good missale reason. No, it's not, just as 12 months sick pay is not a good reason. The guarantor would have been chased for any monies you failed to pay, but that's no guarantee they would have actually paid.


    Who sold you this mortgage? If a broker prior to 2005 they were not regulated and can dismiss your complaint.
  • SonOfSonOf Forumite
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    Also thanks for the private message but I'm uncomfortable responding to messages from people that have spelling issues.

    If they were attempts to help you commercially, then you should report them to the board admin as that is strictly against the rules.
    However the mortgage broker did not ask about other policies, in the event of sickness my employer provided full salary sick pay for up to 12 months at the time of application due to length of service.

    The FOS routinely reject complaints that have 12 months sick pay in the case of MPPI. its a good reason with loan and credit card PPI but not long term secured debts, like a mortgage.
    I also had, and still have, another policy covering injury, hospitalisation, death which would cover the mortgage costs and more.
    That doesn't appear to overlap with MPPI.

    You haven't added anything new to suggest any wrongdoing. For reference, mortgage brokers account for under 1% of PPI complaints and around 16% get upheld. Whilst it is possible for a mortgage broker to have missold you (after 14th Jan 2005) PPI is not generally seen as a mortgage broker issue. And you can still buy MPPI today.
  • edited 1 July 2019 at 12:14PM
    societys_childsocietys_child Forumite
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    edited 1 July 2019 at 12:14PM
    rjbv wrote: »
    Plus for those about to shoot me down and say why was this other external income not declared to negate the need for a guarantor, it's because my guarantor was happy to proceed as guarantor in the knowledge that my partners income was sufficient to prevent them having to pay up.
    No one is shooting you down.
    Your guarantor committed to covering your mortgage because they believed it would never happen?
    What if your partner became unable to work for some reason? A mortgage is long term with life changing consequences if it defaults. Everything you've said shows you had need of insurance.


    Personal relationship/family politics. Never you mind.
    Complaints based on "my parents/ family / friend/" would have paid it, are normally rejected as viable complaint reasons by lenders.
  • rjbvrjbv Forumite
    4 Posts
    The broker was from Slater, Hogg and howison in November 2007.
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