is this hidden ppi

[dee gray]

I took out my mortgage with the Halifax, I

 

am trying to claim back mis sold ppi that was sold to me by an independent financial advisor and

 

by going through all my old documents I have discovered an amount on the mortgage transactions right at the beginning of the agreement called 'mortgage security'.

 

I haven't a clue what this is, the amount I was charged was £498.15.

 

Anyone have a clue what this was,

 

is this hidden ppi?

[Hortz]

When was the mortgage taken out and did you have a high (over 75%) loan to value?

 

If yes and in the 90s/early 00s it is probably mortgage guarantee insurance.

 

This was used on high LTV mortgages to protect the lender in the event that you default on the mortgage

and they can't sell the property for enough to repay the outstanding debt.

 

The lender would often make it a condition of the offer that you take out an appropriate policy to indemnify them.

 

It's not really in fashion any longer but was very popular in the 90s.

[dee gray]

I took the mortgage out in 2001. I put up 11% of the mortgage up front.

I hadn't even realised I had been charged, they must have taken the money off the deposit

I paid them.

[Hortz]

I took the mortgage out in 2001. I put up 11% of the mortgage up front.

I hadn't even realised I had been charged, they must have taken the money off the deposit

I paid them.

 

So that means you borrowed 89% of the purchase price?

 

In that case I would guess it is as per my post above.

[dee gray]

if I defaulted on the mortgage what would the causes for that be, what were they making me insure against? redundancy, unemployment, illness? Or is is a blanket default for any reason?

[Hortz]

They weren't insuring you against anything. If the cover is what I think it is, they were insuring themselves against having to repossess your house and sell it for below the outstanding mortgage value.