Talk Quesada forum

When we took out a mortgage with Sabadell, a condition was that we had to pay a single premium for life/mortgage insurance. We had no idea this would be the case but paid it anyway to ensure we got the mortgage. Question is, does anybody know if you get a refund if you pay off the mortgage early. We paid around 7000 euros a year ago and hope to pay the mortgage off early next year! It seems daft to have mortgage protection if we have no mortgage!

Angelaandstuart wrote:When we took out a mortgage with Sabadell, a condition was that we had to pay a single premium for life/mortgage insurance. We had no idea this would be the case but paid it anyway to ensure we got the mortgage. Question is, does anybody know if you get a refund if you pay off the mortgage early. We paid around 7000 euros a year ago and hope to pay the mortgage off early next year! It seems daft to have mortgage protection if we have no mortgage!

Isn't this the same as PPI that many of us were forced to pay in the UK with our mortgages years back and now are being compensated for having to pay these unnecessary payments?
Maybe someone can tell us why Spain is still insisting on this and if it's the same thing? If it is life insurance then that should not be obligatory.

Jan

Hi, we were surprised when Sabadell presented us with a bill for a single premium insurance and quite cross because they didn't say this when we accepted the mortgage offer! Anyway the answer is YES, they do pay back part of the premium if you repay your mortgage early as we have just experienced (27/9/16). However they do take a hefty % of compensation for early repayment so be aware of that expense.

Thanks Stephen,

That is good news and yes, I just knew they would help themselves to a large chunk of compensation! Not expecting such a hefty bill during the purchasing process really is poor practice and we were fortunate that we had enough to cover it. I guess not everyone will!

took our mortgage out with bank inter, and refused to take out the insurance, had no problem with them whatsoever. I think that your bank has used the hard sell tactic on you.