How to reclaim PPI from Abbey National mortgage
Comments
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Thanks. Yes, Abbey National told me I had to buy this policy as a condition of getting the mortgage. But I still don't see how it (MIG or whatever it was called) differs from PPI. Its purpose was insurance to pay the mortgage instalments during any prolonged period of sick leave or unemployment. Isn't that what PPI was sold for?
PS: I was replying to zx81's post above. I clicked 'Reply' under that post but my reply appears further down the thread. How do you quote part of someone else's comment in orange?0 -
Abbey National told me I had to buy this policy as a condition of getting the mortgage.
Yes. MIG was a condition of borrowing. Lenders were allowed and are still allowed today to make conditions of borrowing. So, even if it was PPI, if the lender insisted on it, then it cannot have been missold.But I still don't see how it (MIG or whatever it was called) differs from PPI. I
MIG has as much in common as PPI as your car insurance does.Its purpose was insurance to pay the mortgage instalments during any prolonged period of sick leave or unemployment. Isn't that what PPI was sold for?
MIG did not cover sick leave or unemployment. MIG was charged to those borrowing above a certain percentage against the low to value. If you defaulted and were repossessed, it paid towards any shortfall if there was negative equity. MIG was a benefit for the lender. They just got you to pay for 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.0 -
I had mortgage with Alliance and Leicester - became Abbey National then Santander way back in the late 1980s, I do have all the old paperwork and had gone through it all but seen no mention of PPI although I also could remember having to pay that large sum even though i was a civil servant and covered for sickness etc, That has answered my question and put my mind at rest thinking i might have been eligible for refund. Thanks again, this forum is such a good resource
Just so you know, the FOS do not consider employer sickpay an issue with MPPI as long as the MPPI pays out in addition to employer benefits. They have been rejecting complaints where there is 12 months sick pay when its MPPI. The reason being that a mortgage is a large secured debt with consequences if it goes unpaid. i.e. a serious debt. When its short term unsecured debt, the FOS is more likely to uphold a complaint where there is 12 months sick pay. MPPI is still sold today. One of only two types of PPI that is.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.0 -
It protected the lender (from negative equity), not you, and would only come into play if you defaulted on the mortgage and were repossessed. It didn't cover your unemployment or sickness.Abbey National told me I had to buy this policy as a condition of getting the mortgage. But I still don't see how it (MIG or whatever it was called) differs from PPI. Its purpose was insurance to pay the mortgage instalments during any prolonged period of sick leave or unemployment.
You cannot complain it was mis-sold because it was indeed a condition of mortgages in which the borrower required a loan with little or no deposit. If you didn't want to pay the MIG, you had the option of saving for a bigger deposit.
So no refund will ever be forthcoming to you, I'm afraid.0 -
MIG protects the lender, PPI is supposed to protect the borrower.
You were not missold in any case, as it was a conditoon of your 100% mortgage.Shampoo? No thanks, I'll have real poo...0 -
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Actually I did have a 100% mortgage, from Abbey National, in 1982. I'm sure of that.Moneyineptitude wrote: »Very unlikely to have been a 100% mortgage in 1982, but nevertheless one granted with a very small deposit.
Thanks for the various explanations above about the difference between MIG and PPI. It makes sense. I didn't feel I was mis-sold, but as everyone else seems to be getting on the claim bandwagon I just wondered if I was missing out on something I should be claiming too! Glad to know that isn't the case.0 -
Perhaps someone can shed light on problem similar to he one above. Took out a mortgage with Abbey National in 1980s which continued in various guises until around 1995 when I changed to The Coventry. I have no paperwork to support my claim for PPI from Abbey National as a box of personal paperwork went 'missing' during a house move. Abbey National say they cannot identify me even with all my personal details and three previous addresses - for which I had mortgages with them. When I took out the original mortgage (endowment) I also had to take out another insurance because they would not lend me the amount asked for without it. It was not a one off payment (MIG?) but a separate insurance which continued until the mortgage was paid off. I had the full deposit required. Was this a form of PPI, and why can't Abbey National identify me? Sorry if I have added this the wrong way but I am new to the forum and not sure how to do this. Any advice would be greatly appreciated. Has anyone actually been successful in claiming PPI from Abbey National?0
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Nolucksofar wrote: »why can't Abbey National identify me?
This is why -Nolucksofar wrote: »Took out a mortgage with Abbey National in 1980s which continued in various guises until around 1995
It was 22 years ago.0 -
I have no paperwork to support my claim for PPI from Abbey National as a box of personal paperwork went 'missing' during a house move.
Noting that you are not only talking about pre-regulation of insurance. You are also pre-regulation of financial services completely. You also pre-date the data protection act.
Most building societies pre-regulation did not sell their own brand product. They used local insurance brokers or (what later became known as) IFAs. Often the broker would see you in the society office and there would be a commission share agreement.
PPI was a mid 80s product. Are you sure you had MPPI? And are you sure Abbey sold it to you and not a broker?Abbey National say they cannot identify me even with all my personal details and three previous addresses - for which I had mortgages with them.
That is not a surprise. There would be little expectation of there being records going back that far. Even if they could find you for mortgage purposes, they probably wouldnt find anything for insurance and certainly wouldnt if a broker was used for the insurance.When I took out the original mortgage (endowment) I also had to take out another insurance because they would not lend me the amount asked for without it.
That is MIG. Not PPI.It was not a one off payment (MIG?) but a separate insurance which continued until the mortgage was paid off.
Most lenders allowed the MIG payment to be added to the mortgage and paid over the full term or a sub account with reduced term. You didnt have to pay it as a lump up front.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.0
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