Good Evening,

I currently have an ongoing thread about my mortgage company and the arrears I have along with other problems

http://www.consumeractiongroup.co.uk/forum/showthread.php?398831-Kensington-Mortgages-Assisted-Sale&p=4540089#post4540089

I am currently going through all my paperwork to claim my charges ...looking through got me thinking

I have Buildings and Contents insurance with my mortgage provider. At the time they said I had to have hmm buildings with them. We have since got into arrears and have missed several payments. These arrears also include the insurance.

Now with my thinking I am paying silly interest on this amount and also it's been added to my grand arrears total which is going to court for eviction.

Do we think they can do this? Is this something I can claim back?

Thanks

Olives xx

I am pretty sure there were rules brought in to stop Insurance being added to mortage accounts years ago, whereby mortgage interest would be charged on the insurance premium. Mortgage companies may provide insurance and collect the insurance premiums, but they should be separate from mortgage payments.

If you have a mortgage, you have to have buildings insurance, so I expect that they have continued any insurance you have.

Anyway, no you can't claim back these insurance payments.

Some mortgage companies set up a SIP (Special insurance policy), when I worked with the RBSG we set up the SIP and premiums were applied annually and interest charged against it. This would normally be set up as a sub account on your mortgage. These policies are generally expensive but it is a general condition of a mortgage that the interest must be insured. If you can provide evidence to say it was I would imagine they would refund the premiums. You can also get building cover with another provider and as long as it covers the reinstatement value of the property that will be ok.

You also mentioned you are going to court. Are you planning to have a housing adviser there. I would contact Shelter (they may have a local legal adviser who will represent you). Also read up on the pre action protocol and MCOB (section about arrears).

Thanks

Hi UKCA,

Thanks for that. We have a complaint going in with the FSCS as it was TML who was the broker for the mortgage and we strongly believe they mis sold our mortgage. They no longer exist and a fSCS have them in default. It's quite complicated as we have two accounts that they sold us so I am trying to squeeze it all into one complaint.

As for the pending court hearing, we have contacted shelter and they have put us in touch with a legal aid solicitor who should of got our paperwork yesterday....cutting it a bit close as we are in court Monday

Xx

Best of Luck on Monday. I would try and not worry. I worked as part of a financial inclusion policy team covering the UK and something like 97% of people who have a legal adviser at a repo hearing are successful at not being repo'd.

Good luck again.