life insurance with mortgage

marie59

In 1997 my hubby and I took out a life insurance with our mortgage,with BARCLAYS.We were told if we didnt take this MORTGAGEGUARD PLUS out we couldnt have the mortgage.This advice was given by thier FINANCIAL ADVISER.My hubby was 51 and a non smoker,I was 38 and a smoker.The morgage was for £38,000 and the monthly insurance charge was for £72.88p per calender month.(For arranging the premium plan we were then charged for services to support the advice (which amongst other things includes administration and technical support,office accomodation and computer equipment)the charge for this service was a staggering£1,328.Needless to say we are now questioning the monthly premiums at still monthly payments of £72.88p per month.Which in total is costing us an extra £13.500 on top of our morgage.The mortgage finishes in 2012.We are now with all the things that we are hearing in the news and by MARTIN LEWIS and various other things begining to wonder if we were mis sold our life insurance.?When we phoned BARCLAYS up the guy said "Well it does go up every year you know" to which I replied"its been £72.88p since 1997" He didnt know what to say.So we are making an appointment to see him and see what is what.We both feel like we have been led up the garden path somewhat,and are very angry.WHAT CAN WE DO,IS THERE ANY ADVICE ANYONE CAN GIVE US.WOULD WE BE ABLE TO CLAIM ANY MONEY BACK.WE HAVE ALL OUR FINANCES WITH BARCLAYS AND HAVE DONE FOR YEARS,WE FEEL REALLY LET DOWN BY THEM AFTER ALL THE MONEY THEY HAVE HAD OFF US WE DO ALL OUR BANKING WITH THEM. :mad: :money:

dunstonh

For arranging the premium plan we were then charged for services to support the advice (which amongst other things includes administration and technical support,office accomodation and computer equipment)the charge for this service was a staggering£1,328

What you mean is that the cost of advice was £1328 and you were not charged that.

Banks, being tied agents, dont pay commission so they used to be able to show a much smaller amount in there than IFAs did on their illustrations. It was a bias that I believe no longer exists. In reality, the commision would have been more than double that.

begining to wonder if we were mis sold our life insurance.?

No you were not. You had a need and they met that need. No mis-sale.

We both feel like we have been led up the garden path somewhat,and are very angry.

What do you expect when you see a tied insurance agent rather than a proper financial adviser?

WOULD WE BE ABLE TO CLAIM ANY MONEY BACK.

No. You have no grounds for asking for the money back and they have no reason to pay you back.

You bought from one of the most expensive distribution channels there is; a bank salesforce. They retailed their product at a certain price and you agreed to pay that price when you took it out. You have had over 10 years of paying that price and just because you can buy it cheaper elsewhere does not make it illegal, unfair or anything else.

WE FEEL REALLY LET DOWN BY THEM AFTER ALL THE MONEY THEY HAVE HAD OFF US WE DO ALL OUR BANKING WITH THEM

That has nothing to do with it.

You should have seen an IFA. You chose to deal with a tied agent instead. Your choice. You agreed the premiums that were charged. You could have shopped round. you didnt. Again your choice.

You have no grounds for complaint and no laws have been broken.

marie59

Yes We Had To Pay The £1328,the Financial Adviser Was Sent To Us By Barclays We Didnt Have A Choice.

dunstonh

Barclays tied agents dont work on fee basis. They are commission only. The illustration shows cost of advice but it isnt something you pay. That is normal disclosure as the premium covers the cost of advice.

I should also add the lenders could insist on insurance back in 1997. That is not the case now but the rules cannot be applied retrospectively.

Was the £1328 to do with the mortgage rather than the life insurances?