Mortgage Insurance

Jammyjenny91

This is a bit complicated as mortgage advisor was my mother in law and her son (my husband) has recently moved out and asking for divorce and to sell the home im still living in with our daughters. Anyway it has come to light that he has just cancelled our single life policies and the mortgage cover plan. When I mentioned this to a friend he pointed out the mortgage cover plan is a decreasing one and we have an interest only mortgage so it should have been a level cover plan??? Is this correct and is there anything I can do about it? Surely if thats the wrong policy we were mis sold? 
Any advice gratefully received.

[Deleted User]

Surely that depends on what you both wanted.

Your repayment vehicle would have been your means of redeeming the mortgage, so you may not have wanted the expense of the full cover for the duration.

But only you know why you decided to take that policy out.

dunstonh

When I mentioned this to a friend he pointed out the mortgage cover plan is a decreasing one and we have an interest only mortgage so it should have been a level cover plan???

More info needed.

Normally with an interest only mortgage with no repayment vehicle you would take a level term assurance policy.   However, if there is a repayment vehicle, you would do a decreasing term assurance.

If you have no repayment vehicle now but did originally then you would expect a decreasing term assurance.  Or if you told the mortgage adviser that you had or were going to put in place a repayment vehicle then you would expect a decreasing term assurance. 

Surely if thats the wrong policy we were mis sold?

Yes.  However, the one you think you want is actually more expensive than the one you have.    So, you have financially benefitted from the "error" (if one).    So, nothing to gain.