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    • Aspatria
    • By Aspatria 14th Apr 18, 12:04 PM
    • 9Posts
    • 0Thanks
    Aspatria
    Mortgage protection polocy
    • #1
    • 14th Apr 18, 12:04 PM
    Mortgage protection polocy 14th Apr 18 at 12:04 PM
    We were sold a mortgage protection policy in 1980s by the Abbey National BS which we never needed to use. Is this the same as PPI?
Page 1
    • BooJewels
    • By BooJewels 14th Apr 18, 12:46 PM
    • 295 Posts
    • 216 Thanks
    BooJewels
    • #2
    • 14th Apr 18, 12:46 PM
    • #2
    • 14th Apr 18, 12:46 PM
    You'll get other answers about the relevance of the date it commenced, but by way of an explanation, I'll paste something below that I posted in another thread recently, to explain what PPI is, relative to mortgage protection. The fact that you never needed to use it isn't pertinent, as it's an insurance product - one we all hope that we won't need to claim on. If you couldn't have claimed on it, that would be more relevant.

    PPI stands for Payment Protection Insurance - an insurance policy to cover your monthly repayments on a financial product, such as a loan, mortgage or credit card - if you are ill or out of work (with conditions of course).

    A mortgage protection plan is often a package policy that comprises several components - one of which might be a PPI type policy, along with maybe life and/or critical illness cover (they will pay a lump sum to repay the whole borrowing, rather than just cover your monthly repayments). So if you feel that your mortgage protection policy was mis-sold to you, it would only be the PPI portion of that policy (mine is called MRC - Mortgage Repayment Cover) that you could complain about - not the other aspects of it.
    • dunstonh
    • By dunstonh 14th Apr 18, 1:09 PM
    • 94,517 Posts
    • 62,465 Thanks
    dunstonh
    • #3
    • 14th Apr 18, 1:09 PM
    • #3
    • 14th Apr 18, 1:09 PM
    We were sold a mortgage protection policy in 1980s by the Abbey National BS which we never needed to use. Is this the same as PPI?
    Originally posted by Aspatria
    What makes you think that protecting yourself and the mortgage is bad?

    PPI is a specific type of insurance policy. Mortgage protection could be a number of things. Effectively, any type of insurance linked to a mortgage.

    In the 80s, the dominant insurance policy was life assurance. So, if yours was life assurance then its great that you never needed to use it. If you did, it would mean one of you was dead. Insurance is something you buy just in case but hope you never have to use. Not using it does not make it missold.
    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.
    • Aspatria
    • By Aspatria 14th Apr 18, 3:21 PM
    • 9 Posts
    • 0 Thanks
    Aspatria
    • #4
    • 14th Apr 18, 3:21 PM
    • #4
    • 14th Apr 18, 3:21 PM
    Thank you for the clarification
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