PPI - National & Provincial BS

Manxman_in_exile

Looking at a mortgage from N&P dating back 30 years(!).


1. I think I read on a thread on here that Santander are now responsible for any claims against N&P. Is that correct?


2. One of the payments is described on the mortgage offer from N&P as "Insurance Guarantee" (provided by Phoenix Assurance). Can anybody please explain what that was? (And could it have been mis-sold).


Thank you.

Nearlyold

Insurance Guarantee sounds like MIG (Mortgage Indemnity Guarantee) it protected the lender in the event that you failed to pay the mortgage, where following subsequent repossession, the property had to be sold for less than the amount required to clear the outstanding mortgage.

It was compulsory at the time with many lenders for lending above a certain loan to value, you could of course have avoided the charge by a) putting down a larger deposit b) buying a cheaper house (so the LTV was below the MIG threshold c) finding a lender who wouldn't charge a MIG or d) not buying a house until such time as you had sufficient deposit to avoid the need for a MIG policy.

It wasn't mis-sold and you can't claim it back.

SonOf

2. One of the payments is described on the mortgage offer from N&P as "Insurance Guarantee" (provided by Phoenix Assurance). Can anybody please explain what that was? (And could it have been mis-sold).

Alsmost certainly MIG (mortgage indemnity guarantee). It is impossible to be missold MIG.

1. I think I read on a thread on here that Santander are now responsible for any claims against N&P. Is that correct?

Only if N&P sold it. The building societies act 1986 allowed building societies to offer products in other areas. Prior to that, most building societies used local brokers/agents for insurance needs. Often the agent would come into the branch. The lender has no liability for those. So, as you say 80s, you could be either side of that change.

Manxman_in_exile

Thanks all.


I thought it was probably not reclaimable.