PPIs on mortgages

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ellectrastar
ellectrastar Posts: 178 Forumite
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in Reclaim PPI & other insurance
Hi,


The only "loans" I've had are mortgages and I thought I would take a look through the paperwork to see if any referenced PPI. Initially I can't see that they do, but could I still enquire with the relevant banks and see what they say?



I think I read on here that mortgage PPI is not as common as that on credit cards and loans?


Thanks.

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You can enquire, but mortgage PPI isn't often mis sold. What are your complaint reasons?
  • dunstonh
    dunstonh Posts: 116,534 Forumite
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    One of the reasons most MPPI complaints fail is that it is not normally built into the mortgage but set up as a monthly direct debit standalone from the mortgage. That is how PPi should be set up.
    I think I read on here that mortgage PPI is not as common as that on credit cards and loans?

    its not as common and even where it does exist, most complaints about MPPi fail. You can still buy MPPi today.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Nasqueron
    Nasqueron Posts: 8,933 Forumite
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    MPPI is common enough, in fact it's still sold today.

    The policy could be taken out via your lender or via a third party such as an IFA who arranged the mortgage, or even taken out by you directly. It would almost always be a separate monthly payment. The cover may well be with another company to the mortgage lender however.

    If you have solid complaint reasons you can complain to whoever sold it to you just keep in mind that a mortgage is a life changing debt and complaint reasons that work against a short term debt like a credit card do not work for a long term debt like a mortgage e.g. having a month sick pay is a reasonable argument against a credit card PPI policy, even having 6 months full pay (like in the NHS) gets rejected by the FOS for mortgages because you could lose your home once your payments are no longer covered
  • ellectrastar
    ellectrastar Posts: 178 Forumite
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    Deleted_User wrote: »
    You can enquire, but mortgage PPI isn't often mis sold. What are your complaint reasons?


    My complaint would be that I had it and didn't know I had it, but as I said I can't see record of it in the paperwork. There wasn't any separate payment taken, only the monthly mortgage charge.



    I was just thinking it might be worth checking seeing as the deadline is a year away, and everyone else seems to be doing it!
  • Nasqueron
    Nasqueron Posts: 8,933 Forumite
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    ellectrastar wrote: »
    My complaint would be that I had it and didn't know I had it, but as I said I can't see record of it in the paperwork. There wasn't any separate payment taken, only the monthly mortgage charge.



    I was just thinking it might be worth checking seeing as the deadline is a year away, and everyone else seems to be doing it!

    Are you sure you even had it then. Single Premium PPI was rarely used for mortgages (not impossible though).

    Not knowing you had it is not really a complaint reason as you'd have signed up for it and depending on when any such policy was taken out they may still have your signed agreement.

    I'd suggest speaking to your lender first of all and seeing if they have any record of such a policy and if not it seems likely you didn't as anyone else would have a monthly charge to cover the policy which you'd see on your banking records.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    ellectrastar wrote: »
    My complaint would be that I had it and didn't know I had it

    That's not going to work, as the mortgage application process, and the need for you to provide bank details and sign up for it, would mean that you knew.

    If you've since forgotten, that wouldn't be mis selling, but mis remembering.
  • dunstonh
    dunstonh Posts: 116,534 Forumite
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    No lenders retailed single premium MPPI. It was only a small number of dodgy mortgage brokers pre-credit crunch that did it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ellectrastar
    ellectrastar Posts: 178 Forumite
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    So basically it's highly unlikely that any mortgage product I had would have a PPI attached to it?
  • dunstonh
    dunstonh Posts: 116,534 Forumite
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    ellectrastar wrote: »
    So basically it's highly unlikely that any mortgage product I had would have a PPI attached to it?

    No. MPPi is one of the easiest to see. If there is no monthly payment and you bought directly from lender then you didnt have it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ellectrastar
    ellectrastar Posts: 178 Forumite
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    Okay, thank you.
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