Reclaiming mis-sold PPI on mortgages
Over the last couple of decades, lenders have sold mortgage payment protection insurance (MPPI) to a large number of people. The policy would help safeguard your mortgage repayments if you became unemployed, or were out of work due to an accident or sickness.
However, MPPI was mis-sold to a number of people, with many not knowing they had the policy.
How was PPI mis-sold with mortgages?
There are a number of ways in which PPI was mis-sold. Lots of people took out PPI cover with their mortgages believing that it boosted their likelihood of being accepted, or that the policy was a necessity, and there are other ways it may have been mis-sold:
- Quite simply, were you aware you had the insurance policy added to your mortgage? If you had no idea you had it then you may have been mis-sold.
- If you were unemployed, retired or a student when MPPI was sold to you, then you might not have been able to ever claim on the policy, so it could have been mis-sold.
- If the policy costs weren’t listed separately to the mortgage advance, then you may have been mis-sold, because the seller was required to list the costs separately.
- Were you provided with information about alternative policies? If not, then you may have been mis-sold, because you may have been able to get cheaper cover elsewhere.
- Were you informed about any exclusions? For example, if you had a pre-existing medical condition, that may have voided the cover and therefore could be classed as you being mis-sold.
- Did you know that MPPI was optional, not compulsory? If the seller told you it was required in order to receive the mortgage, or you felt pressured in any way to get MPPI, then you might have been mis-sold.
- Did the seller check whether you already had other policies in place? You might have been fully covered already and so you may have been mis-sold if they failed to check.
- Did your employer provide full sick pay? If so, then you would have still been able to pay your mortgage payments and therefore MPPI was unnecessary.
How much can I reclaim?
The amount you can reclaim varies for each person depending on a number of factors. You may be owed hundreds or thousands of pounds, with some mortgage PPI policies worth as much as £40,000.
It doesn’t matter if you have reclaimed PPI on other products (such as loans and credit cards) before, because each claim is separate. If you think you have been mis-sold PPI on your mortgage, then fill out a claim form on our website.
Mortgage Providers Facing PPI Queries
The following is a list of mortgage providers who are known to have sold PPI. Please note this is not an exhaustive list.