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  • FIRST POST
    • pigtails_21
    • By pigtails_21 4th Feb 18, 6:45 PM
    • 582Posts
    • 3,446Thanks
    pigtails_21
    Mortgage PPI
    • #1
    • 4th Feb 18, 6:45 PM
    Mortgage PPI 4th Feb 18 at 6:45 PM
    We had TMPP with Halifax taken out in 2008. We had Critical illness, life insurance and mortgage payment protection insurance elements. It was set up correctly with payments taken seperately to the mortgage.

    From reading through threads, I understand complaints are generally rejected for this. I see that even 12 months sick pay is dismissed (working in local government, I think we only had 6 full pay, 6 half pay).

    We were under the impression we had to take it out, but appreciate we can not prove that, and we should have fully looked into it.

    The only other point is our mortgage was under 80k, which represented about 2x our income at the time (although we did have a 2 year old). When signing up to the mortgage though I was only a few months away from qualifying in my profession, at which point approx 8k pay rise (I don't recall being asked about pay-rises, but again I can't evidence this). We also had about 14k in savings, so would have been easily able to afford the mortgage if something had happened, for quite a while.

    Is this worth a complaint? I suspect not, but wanted to check.
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Page 1
    • dunstonh
    • By dunstonh 4th Feb 18, 9:14 PM
    • 93,015 Posts
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    dunstonh
    • #2
    • 4th Feb 18, 9:14 PM
    • #2
    • 4th Feb 18, 9:14 PM
    The only other point is our mortgage was under 80k, which represented about 2x our income at the time (although we did have a 2 year old).
    The death in service money is designed to cover short term loss of income and go someway to replace lost pension benefits.

    The really quick and dirty life assurance requirement, as a ballpark figure is around 20 times income plus debts. So, 2 times DIS doesnt cut the mustard.

    We also had about 14k in savings, so would have been easily able to afford the mortgage if something had happened, for quite a while.
    That is a low level of savings that would be eaten quickly.

    Is this worth a complaint? I suspect not, but wanted to check.
    Nothing you have said indicates any wrongdoing. You appear to have a financial need and the product appears suitable. Its expensive compared to the IFA/whole of market offerings but you know that when you buy from a bank. So, you cannot complain about cost.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Claire McCartan
    • By Claire McCartan 6th Feb 18, 10:34 AM
    • 2 Posts
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    Claire McCartan
    • #3
    • 6th Feb 18, 10:34 AM
    MPPI Circumstances Changes
    • #3
    • 6th Feb 18, 10:34 AM
    We took out MPPI cover (which was free for the first year) with our Nationwide mortgage in March 2002, it was a joint policy but covered our mortgage payments for 12 months for disablement or unemployment. In June 2004 my husband left work and set up a new company (he is a partner). At the time I contacted Nationwide to explain the change in circumstances and whether the MPPI cover would still be applicable. I was told that if the company ceased trading and he was effectively made redundant this would have to be declared through HMRC. He is an architect and even if the company closed, they would still have to keep their professional indemnity insurance running for 7 years, and we could not claim until the seven years had run and the company had officially ceased trading. I felt the advice unsatisfactory at the time, but I was reluctant to stop the payments, and nearly 14 years on we are still paying it even though I don't think we will be able to claim. Should we stop paying? Are there any grounds that we may have been ill-advised in June 2004?
    • dunstonh
    • By dunstonh 6th Feb 18, 10:57 AM
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    dunstonh
    • #4
    • 6th Feb 18, 10:57 AM
    • #4
    • 6th Feb 18, 10:57 AM
    they would still have to keep their professional indemnity insurance running for 7 years, and we could not claim until the seven years had run and the company had officially ceased trading.
    You say he is a partner. That makes him effectively self employed and not the same as a limited company. So, the payment of the liability insurance would not require the company to remain open.

    I felt the advice unsatisfactory at the time,
    It also appears there may have been some confusion about whether he was self employed or shareholding director.

    Are there any grounds that we may have been ill-advised in June 2004?
    With any other provider, no (most cover self employed with no issues). However, I believe the Nationwide one doesnt cover the self employed. Your husband, being a partner, was self employed. So, if yours is one of theirs that doesnt, then you should complain.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Claire McCartan
    • By Claire McCartan 6th Feb 18, 11:28 AM
    • 2 Posts
    • 0 Thanks
    Claire McCartan
    • #5
    • 6th Feb 18, 11:28 AM
    • #5
    • 6th Feb 18, 11:28 AM
    With any other provider, no (most cover self employed with no issues). However, I believe the Nationwide one doesnt cover the self employed. Your husband, being a partner, was self employed. So, if yours is one of theirs that doesnt, then you should complain.[/QUOTE]


    Can I ask a stupid question please? Do I need to stop paying the MPPI before I can apply to claim?
    Many thanks for your time.
    • dunstonh
    • By dunstonh 6th Feb 18, 12:06 PM
    • 93,015 Posts
    • 60,400 Thanks
    dunstonh
    • #6
    • 6th Feb 18, 12:06 PM
    • #6
    • 6th Feb 18, 12:06 PM
    With any other provider, no (most cover self employed with no issues). However, I believe the Nationwide one doesnt cover the self employed. Your husband, being a partner, was self employed. So, if yours is one of theirs that doesnt, then you should complain.
    Originally posted by Claire McCartan

    Can I ask a stupid question please? Do I need to stop paying the MPPI before I can apply to claim?
    Many thanks for your time.[/QUOTE]

    You can stop it and still make the complaint.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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