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    • A Nice Englishman
    • By A Nice Englishman 10th May 18, 10:12 AM
    • 1,955Posts
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    A Nice Englishman
    Halifax Mortgage Insurance
    • #1
    • 10th May 18, 10:12 AM
    Halifax Mortgage Insurance 10th May 18 at 10:12 AM
    This is probably rather an obscure one, but I took out a mortgage (long since paid off) around 1990 with what was then the Halifax Building Society. As I was borrowing over a certain percentage of the purchase price I had to pay the premium for an insurance policy which would have protected the Halifax if I defaulted and they were unable to recover the money from me.

    Does anyone remember these policies?
Page 1
    • zx81
    • By zx81 10th May 18, 10:14 AM
    • 16,856 Posts
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    zx81
    • #2
    • 10th May 18, 10:14 AM
    • #2
    • 10th May 18, 10:14 AM
    Yes. It's an indemnity insurance.

    It's fine and was a condition of borrowing. Nothing to worry about.
    • dunstonh
    • By dunstonh 10th May 18, 10:30 AM
    • 92,652 Posts
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    dunstonh
    • #3
    • 10th May 18, 10:30 AM
    • #3
    • 10th May 18, 10:30 AM
    Does anyone remember these policies?
    Yes. MIG is the thing in question.

    After the credit crunch, there was talk about these coming back again but the recovery in the market saw that quieten down.

    You cant reclaim it (as you are posting in the reclaim section I assume that was your train of thought).
    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.
    • A Nice Englishman
    • By A Nice Englishman 10th May 18, 10:39 AM
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    A Nice Englishman
    • #4
    • 10th May 18, 10:39 AM
    • #4
    • 10th May 18, 10:39 AM
    I must admit I'd thought there might be the possibility of reclaiming, but at least your answers have saved me wasting my time. Thanks.
    • Moneyineptitude
    • By Moneyineptitude 10th May 18, 10:53 AM
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    Moneyineptitude
    • #5
    • 10th May 18, 10:53 AM
    • #5
    • 10th May 18, 10:53 AM
    I must admit I'd thought there might be the possibility of reclaiming
    Originally posted by A Nice Englishman
    Since it was an insurance policy to protect the lender (not you), it's very difficult to see any circumstance in which you might get a refund.

    You need to realise that not every insurance was PPI and not even every PPI policy was mis-sold.
    • A Nice Englishman
    • By A Nice Englishman 10th May 18, 11:28 AM
    • 1,955 Posts
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    A Nice Englishman
    • #6
    • 10th May 18, 11:28 AM
    • #6
    • 10th May 18, 11:28 AM
    Since it was an insurance policy to protect the lender (not you), it's very difficult to see any circumstance in which you might get a refund.

    You need to realise that not every insurance was PPI and not even every PPI policy was mis-sold.
    Originally posted by Moneyineptitude
    I know it wasn't a PPI, just didn't know what the correct name was.

    My train of thought was that I was forced to pay for it even though I couldn't ever benefit which was the basis of some PPI refund claims. The Halifax could only have claimed on it after they'd pursued me for every penny I had and still not recovered all I owed.
    • Moneyineptitude
    • By Moneyineptitude 10th May 18, 11:49 AM
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    Moneyineptitude
    • #7
    • 10th May 18, 11:49 AM
    • #7
    • 10th May 18, 11:49 AM
    My train of thought was that I was forced to pay for it even though I couldn't ever benefit
    Originally posted by A Nice Englishman
    Understand that it wasn't ever for your benefit though.

    It was a condition of the mortgage being granted to you at all.

    As I said earlier, it was to protect the lender and allowed you to take out a mortgage with very little or no deposit.

    Your only alternative would have been to save for a much larger deposit.

    There was no mis-sale of this insurance and you would have been fully informed that it was a condition of the mortgage.

    Just so you know, your query is not an "obscure" one, it comes up with alarming regularity on the forum.

    I'm certain Banks and other mortgage providers have to contend with actual "complaints" about these policies too...
    • dunstonh
    • By dunstonh 10th May 18, 11:52 AM
    • 92,652 Posts
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    dunstonh
    • #8
    • 10th May 18, 11:52 AM
    • #8
    • 10th May 18, 11:52 AM
    My train of thought was that I was forced to pay for it even though I couldn't ever benefit which was the basis of some PPI refund claims.
    No. that is not correct.

    Indeed, with PPI complaints, where it was compulsory, the complaints fail. Insurance is allowed as a condition of borrowing. The issue with PPI that has probably given you that thought is where it was NOT a condition of borrowing but you were lied to and told it was.

    It is one of the hardest complaint reasons to succeed on but it is a missale reason.
    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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