Mortgage PPI through an adviser

norfolkboy_3

Hi. 2007 I purchased my first house from Annington Homes (ex MOD) They had several incentives for purchasers which I took advantage of including using a company called ONN Financial to arrange my mortgage. The adviser for ONN found me a mortgage with the Halifax, but told me I could only get the mortgage if I also told a ppi policy out and they subsequently arranged a policy with Legal and General. I had no real choice in this matter at the time. I am still paying the monthly premium, but I feel I was miss sold now. Do I have a case?

The_squirrell

norfolkboy wrote: »

Hi. 2007 I purchased my first house from Annington Homes (ex MOD) They had several incentives for purchasers which I took advantage of including using a company called ONN Financial to arrange my mortgage. The adviser for ONN found me a mortgage with the Halifax, but told me I could only get the mortgage if I also told a ppi policy out and they subsequently arranged a policy with Legal and General. I had no real choice in this matter at the time. I am still paying the monthly premium, but I feel I was miss sold now. Do I have a case?

It depends. If it was a condition of the mortgage then No you don't have a case. If you feel you have a genuine complaint for other reasons then you would complain directly to the Broker who sold you the mortgage.

[Deleted User]

norfolkboy wrote: »

I had no real choice in this matter at the time. I am still paying the monthly premium, but I feel I was miss sold now.

Mortgage advisers were and are allowed to "disturb" the customer about the possibility of unemployment or illness and advise about the availability of insurance (Mortgage PPI) to cover this. Certainly, by 2007, it was not usually compulsory to have the insurance but MPPI is still retailed today and is a very useful policy in the event of calamity. Remember, the insurance covers probably the most expensive finance you have.
Your complaint is therefore very weak and, if you complain that you were told MPPI was compulsory, there is every likelihood that there will be thorough documentation (signed by you) refuting this allegation.

norfolkboy wrote: »

Do I have a case?

It's very rare that an MPPI complaint is upheld solely on the basis of the complaint reason you gave. In the absence of any evidence supporting your complaint, you would be reliant on other faults being found with the sale. Realise also that, statistically, most mortgage PPI complaints fail anyway.

norfolkboy_3

Hi. Thanks for the quick replies! ONN Financial are no longer trading now. I remember the mortgage paperwork from the Halifax made no requirement to have a policy in place. My argument is that by being sold this policy with no other options available to me on the pretext that I had to have it was a little unfair and did not at least give me the opportunity to make sure it was the best value plan I could have purchased.

[Deleted User]

norfolkboy wrote: »

I remember the mortgage paperwork from the Halifax made no requirement to have a policy in place.

So if you knew this at the time, why didn't you cancel the insurance (and look elsewhere) instead of agreeing to it and continuing to pay it for the last twelve years?

It doesn't sound as if you were sold anything at all unsuitable.

Do you not have any other complaint reasons?

If the advisor is no longer trading, you'll have to apply to FSCS by the way...

norfolkboy_3

I only realised my mortgage paperwork made no reference to a plan recently when going through some old papers. I can't disagree that the policy was not unsuitable, but my argument is the way it was sold was unfair. I may give it a go through the FSCS, what have I got to loose?

[Deleted User]

norfolkboy wrote: »

I can't disagree that the policy was not unsuitable, but my argument is the way it was sold was unfair.

As I said earlier, there is no evidence to support your very weak complaint, but go ahead anyway if you want.
As you say, what have you got to "loose"?

SonOf

I can't disagree that the policy was not unsuitable, but my argument is the way it was sold was unfair.

The FSCS are only upholding around 5% of complaints against mortgage brokers. Most of those are single premium MPPI which is bad. Not regular premium.

Your reason is extremely weak.
1 - Most MPPI complaints fail as you are not covering an unsecured loan/credit card here. You are covering a secured debt with lifestyle changing consequences if it goes unpaid.
2 - Monthly premium standalone is how PPI should be set up. So, there is no product failing here.
3 - You are making allegations about the sale that cannot be proven. You may have been told a lie but equally, it could be you telling the lies. With no evidence, they will not uphold on that particular point.
4 - It was a common model for brokers to insist on an insurance purchase to give free mortgage advice. That model is allowed as long as the insurance is suitable.

So, based purely on what you have said, the odds are really strongly stacked against you and you would expect rejection. That doesn't mean you wont succeed but there wont be any documentation and the complaint will fall back to look at suitability. And from what you say, the policy is suitable.