Mis Sold PPI Mortgage Protection
It is bad enough that we have been mis sold PPI, payment protection insurance, on personal loans, automobile loans and on credit cards but to have been mis sold PPI mortgage protection is untenable! Mortgage loans already carry such high finance charges simply because of the amounts which are usually borrowed so, to
potentially add half again the amount on which interest will be calculated is scandalous. In fact, it is a scandal to mis sell PPI.
Unfortunately, for many UK consumers it is a bit late as the damage has already
No Logic behind Mis Sold PPI Mortgage Protection
Of course to the lender, it appears as though selling payment protection on a mortgage could be quite lucrative. But consider this. If the mortgage loan is for £200k and the percentage of payment protection is 40% cost to the borrower, then that borrower is for all intents and purposes now borrowing £280k. Do the math. The monthly instalments on £200k is bad enough, now consider how much higher those instalments will be with £280k being amortized over the same term loan. It is not a pretty picture in the least. Whilst the government mandates that mortgage lenders compensate mis sold PPI.
Dealing with Mis Sold PPI on Mortgage Loans
Consumers should make every effort to understand what their loan documents say before signing them. On the closing statement it will be quite obvious that you have been mis sold PPI mortgage protection because it will be itemised. If you see a figure that is somewhere between 20% and 56% of the amount you are borrowing being added above and beyond that amount, you can assume that is for mis sold payment protection. Of course this is worst case scenario when the lender doesn't tell you they are adding that cover.
You do not have to buy PPI in order to qualify for a mortgage loan and if you
are told otherwise it is just not true.
Mis sold PPI mortgage protection is more common than you can imagine. If you have been mis sold PPI on mortgage loans then you are probably entitled to claim back what you have paid. Since you are probably talking about a sizeable amount, depending on how long you have been paying, it
may be a good idea to consult with a professional PPI claims company. You can talk to the claims team at Belmont Thornton by calling 0207 471 2000.
blog comments powered by