Thread: Insurance mis-selling with mortgages

I have had a couple of people come to me looking to remortgage and found they have an insurance tie-in which seems to be particularly tricky to undo.

Two banks in particular seem to do this a lot - S*******r and S*****k
the way it works is the annual life insurance premium is multiplied by the term of the mortgage and added to the total sum borrowed.
So, a couple who may pay 150€ a year each end up having 250€ x 2 x 35 (years) added to their mortgage - a total of 17,500€ for example.

This means they end up paying interest on this amount for the term of their mortgage as well - typically 5% repayment over 35 years would amount to approx 37,000€!!!
A cannot think of a worse way to buy insurance.... This kind of upfront lump-sum selling has been all but outlawed in the UK recently as it was deemed unfair and in no way in the best interests of the client.

Has anyone successfully managed to get any of the original amount back whilst subrogating their mortgage to another bank?
I tried contacting the Direccion General de Seguros for advice but they told me to write a letter - then never replied or acknowledged receipt.
Lawyers here in Tenerife don't seem to have much idea about what will happen either