If you are a single person and have never married or had a partner and never had any plans for the house to be passed onto any one else within your family or friends then this may well have some merits. If you had a prtner who typically 20 years ago did not work and stayed at home and had a family and had no incoem of his/her own then the policy would have been designed to protect them and the house they lived in in the event that you died. If you had then the lender may well come and take the house away and sell it to recover their money but this would then also leave your partyner and potentially children living on the street.

Most people do not take on life assurance to keep the lender happy, they take it on so that in the event that somethingn happens the house will remain within the family and can be passed on to whom ever you may have chosen or to a surviving partner.

The only way that you could possibly argue that you have been mis sold the policy is if you would not have planned to pass the house ownership onto anyone else at the time of your death. This is most often the case for someone who may have no family or had never married and has no children.

I find this an interesting topic.

21 years ago I took out my mortgage and the provider refused to give me the mortgage unless I took out a life assurance policy. I was forced to take the insurance policy or no mortgage. I think most of us were treated like this years ago.

Now my mortgage loan to value back then was 88% - so there was always equity in the house and in the event I defaulted on my mortgage I can argue that the provider would always get their money back regardless of whether I lived or died, lost my job or not - they always could have sold the house from under me and recovered their money.

The insurance policy therefore it could be argued was an unnecessary policy that the mortgage provider insisted upon.

Sounds just like miss sold PPI to me?

Maybe this will end up opening the flood gates of miss selling life insurance policies for mortgages next?

Any comments or valid reasons why this is any different from PPI?

Thanks Huckster

Written complaint to the company who sold you the Life policy, followed by referral to the FOS, if you need to.

When you complain, make it clear that you are willing to spend the time taking the complaint to the FOS, if you have to.

That is all that you can do.

i took out a life policy some years ago when taking out a mortgage, the woman basically said no liofe cover no mortgage, and as i wanted the mortgage i agreed to it. she told me the £25k life cover would remain at £25k when the policy matured. since then i have sold the house back in 2004 but kept the policy on thinking it would still be beneficial. i have now bought another house back in 2006 and have life cover on that, but that was my choice and i no it decreases each year. i have now discovered the first policy i bought was decreasing and is now only worth £8k, so i have been paying for something i dont need nor did want in the first place. i have weritten to the company and complained but they basically said tough and it was up to me to cancel the policy and will not no premiums paid back, but i was not complaining that i hadnt cancelled it and claim back premiums, i was complainming that i felt i was missold it, they have now passed it on to the sales team who will look to see if i have a claim for missold, just wondered if anyone had any advice or thoughts, thanks