Do I Need Mortgage Payment Protection
Buying a new home is really an important time in anyone's life and even more so if you are a first time homebuyer. Unfortunately, many mortgage lenders know how excited you are on the one hand and worried about being able to keep up with repayments on the other hand. Because of this they will try to sell you on the idea of purchasing payment protection insurance, or in this case, mortgage payment protection insurance (MPPI). Stop and ask yourself, "Do I need mortgage payment protections?" You might be bowled over at the answer!
As a First-Time Homebuyer, Do I Need Mortgage Payment Protection?
Here is the question that we often hear and one that isn't always as easy to answer as we would like it to be. Considering the recent meltdown in the mortgage industry within the past few years, it is a very good question to ask. Unfortunately, the type of mortgage protection insurance that your lender is liable to offer may not provide the type or amount of protection you need. Consider the fact that payment protection insurance can cost as much as 13% to 56% (in some cases even more!) of the amount you are borrowing for your mortgage.
Then, there are so many conditions and exclusions in the average payment protection policy that only a handful of people qualify for cover, 13% as a matter of fact. Where does that leave you when asking "Do I need mortgage payment protection?" Let's hope it doesn't leave you within 87% of the population or you will be literally throwing your money away! Those in that group who had the misfortune to purchase PPI are now reclaiming PPI because they should never have been mis sold this product.
Belmont Thornton's Response to "Do I Need Mortgage Payment Protection?"
Here at Belmont Thornton we are fielding calls from thousands and thousands of UK consumers who are asking "Do I need mortgage payment protection?" because they were sold a policy they found they couldn't use. Perhaps they were not eligible for cover because they were numbered amongst the exclusions. Other times, new homebuyers realise just how much PPI costs them and suddenly find themselves unable to make monthly repayments. Whilst we would like to tell those who have already purchased mortgage protection insurance that they don't need it, the answer isn't always quite that cut and dry.
If you are asking "Do I need mortgage payment protection?" because you purchased a policy when you took out your mortgage loan, then you might be looking to claim back bank charges. We will gladly help you file a PPI claim if you were mis sold payment protection but if the policy was not misrepresented in any way and not mis sold, then there may be little we can do for you. If you have any questions as to whether or not you can claim back PPI because you feel you have been mis sold, talk to our claims team on 207 471 2000. It only takes a few moments of your time and we may just be able to help you file to get a refund on what you have paid into the policy to date. You'll never know until you try!
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