In this brief guide, we are going to answer the question “Can I claim back mortgage protection insurance?”
What is Mortgage protection insurance?
Mortgage protection insurance is insurance which you get to cover your monthly mortgage repayments in case you become unemployed, sick and unable to work. Mortgage protection insurance is essentially a type of insurance designed to pay off your mortgage if you pass away.
Can I claim back mortgage protection insurance?
Yes, you may have been able to claim back mortgage protection insurance if it was mis-sold to you but this will no longer be the case as you have now missed the deadline to make such a claim.
The Deadline to make a mortgage protection insurance complaint regarding a firm was 29 August 2019
Mortgage protection insurance was initially sold by mortgage lenders at the same time they sold a mortgage. In most cases, it was added to the mortgage product and the payments were spread over the mortgage term without the borrower knowing. This meant the mortgage borrower was essentially paying for the mortgage protection insurance over a much longer time than they would have if they paid for it upfront or if they were aware of the increased interest charges that the mortgage protection insurance would have added to their mortgage.
Mortgage protection insurance is a type of payment protection insurance (PPI).
Mortgage protection insurance is also referred to as Mortgage payment protection insurance (MPPI).
To claim back mortgage protection insurance it would have had to been mis-sold to you, this could either be because you didn’t know you were buying the mortgage protection insurance or because you weren’t informed of the level of commission which the mortgage lender was receiving as a result of selling you the mortgage protection insurance.
However, there are a few circumstances where an undisclosed commission complaint will not be accepted. The three main reasons are:
– If your mortgage was always FCA/FSA regulated, or became FCA/FSA regulated.
– You received a full rebate in respect of an MPPI mis-selling complaint
– If you repaid your mortgage (i.e. settled your mortgage) prior to 6 April 2008, unless you entered into your Agreement after 6 April 2007.
You can also claim back mortgage protection insurance if you felt that you were pressured into buying it and you don’t really think you need it or you didn’t find the product suitable for you.
When deciding if to make your complaint you should consider these factors but don’t worry the lender will also look at all these factors when considering your complaint.
Can I claim back mortgage protection insurance after the deadline?
Although the deadline for making a claim for mortgage protection insurance has passed you may still be able to make a claim in these two circumstances.
After this time PPI complaints will only be considered if; The complaint is regarding a ‘live’ PPI policy.
There were exceptional reasons as to why the complaint was not received prior to the deadline, which the complainant will need to provide
How to claim back mortgage protection insurance?
To claim back mortgage protection insurance you must first check that you actually have mortgage protection insurance. If you took out mortgage protection insurance when you got your mortgage you would have received a letter from the insurance company explaining how the insurance policy works.
You will usually need to take your complaint to the mortgage lender who first originated your mortgage or the entity which is now managing your mortgage. You can find their contact details on your mortgage statement.
If the mortgage lender is unable to resolve your claim you can then take it to the financial ombudsman.
Making a mortgage protection insurance claim with a claims management company?
There are various claims management companies out there but you do not need to use any of them in order to make a claim for mortgage protection insurance.
If you decide to use a claims management company you should be aware that they will likely charge you a fee.
You may also want to check to see if the claims management company is registered with the claims management regulator.
In this brief guide, we answered the question “Can I claim back mortgage protection insurance?”
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.