100% mortgage insurance ????

[scott150663]

hi all

 

many many years ago when i purchased a house i had to take out a mortgage insurance in case my house was repossesed....................... can any one remember what this type of insurance was called.......

 

The house was repossesed with a deficit of £27 k after it was sold in an auction........

 

The mortgage co got the difference from the policy i had paid for.......but then the insurance co chased me for the money (am still paying it today) this happened in 1989....................

 

Could i reclaim this !!!!!!!!!!!!!!!!!

 

thanks for any replies

 

Scott

[ninjainthenight]

it is a higher lending charge which means that the mortgage company will not lose any money if the home is defaulted. it covers the mortgage company and not you.

You, as you have found out, are liable for the repayments.

 

basically the HLC gets paid to an insurer (im sure not all of it does though) and the mortgage company is insured against default. Normally you get this charge if you borrow more than 95% of the value of the house..

 

although back in the day the percentage would likely have been lower

[ReasonableRon]

Also known as 'Mortgage Guarantee Insurance'.

 

I had to pay for this when I bought my 1st house in the 80's with a 100% mortgage. It was a different age back then.......

 

As for reclaiming - how would that work when the policy was obviously claimed upon and therefore did its job ?

[gizmo111]

The policy was claimed on by the insurance co, who then chase the mortgage payer for the shortfall. I have never understood the logic of this.

[ReasonableRon]

My point was however that it hardly goes in Scott's favour if thinking about a reclaim......that and the 18 year gap.

 

I would have imagined that the ability for the insurers to recover their losses upon a successful claim would have been reflected in the original premiums. Whether it is fair or not is I'm sure not part of the policy wording. :idea:

[k1mmie]

I too had this type of insurance, however we had a shortfall and during the 80's had to sell. We were chased for 12 years for this shortfall which they said was £30000. No proof of figures etc. We eventually got a loan and they accepted £3500 as full and final settlement. Think they wanted to just get rid of them! But they don't let up, full of lots of threats. Funny how you only get 6 years to claim from them but they get forever to come after you!