Belmont Thornton Logo
Claim Back Loan Insurance

Mortgage Protection Claims

Although there is no concrete 'proof', there very well may be some correlation between the mortgage market meltdown of 2008 and 2009 and the literal explosion of mis sold mortgage protection claims from the same period. Banks all over the world were reporting that there was a crisis in the mortgage sector of finance and that record numbers of homeowners were losing their homes to foreclosure. This hit the UK just as deeply as it did elsewhere around the world and at the same time consumers were reporting record instances of mis sold mortgage payment protection insurance policies having been mis sold.

Mis Sold PPI: Coincidence or By Intent?

The whole situation gives cause to wonder whether the mis selling of PPI created financial hardships for borrowers, sending them into foreclosure or if lenders were trying to recoup losses by mis selling a high ticket item when closing on mortgage loans. Or, could it be a combination of the two? (In either case, mortgage protection claims skyrocketed shortly thereafter!) Indeed, many consumers began reclaiming PPI at about the same time that the bottom fell out of the mortgage market which may just be a little too coincidental for comfort.

Did Their Underhanded Sales Tactics Backfire?

According to a recent edition of Panorama on BBC, undercover reporters investigating high street banks feel that incentivised sales of payment protection insurance was the fodder for the cash cow and that it simply got out of hand. Perhaps lenders, foreseeing the mortgage crisis that was largely due to poor investments, began to look for another way to bolster their coffers. However, if this was the case it surely backfired as there are now record numbers of mortgage protection claims for refunds pouring in. As a matter of fact, the British Bankers Association expects that the figures will be so high when all those claims to refund bank charges are tallied that it has reported UK banks as setting aside billions of pounds to handle all those claims. If lenders purposely sold that high ticket payment protection insurance on purpose then it surely did backfire based on the sheer numbers of mortgage protection claims that have come in over the past few years.

Correcting Mis Sold Mortgage Payment Protection

Since the problem has been identified, government and consumer advocate groups such as the Citizens Advice Bureau have been working closely together to correct the problem. It may be quite a while before all the outstanding mortgage protection claims have been satisfied, but there are real steps in the works to reduce the number of future claims. Recent legislation has been enacted wherein borrowers may no longer purchase payment protection insurance within 14 days of closing on a loan. This should systematically reduce mortgage protection claims that result from mis selling and misrepresentation by lenders. Of course there will always be insurance producers and lenders contacting consumers on a 'call back' after the prescribed time has elapsed, but this law will at least put a halt to all the occasions where PPI is added at closing unbeknownst to borrowers.

If you feel that you have been mis sold mortgage payment protection insurance then it is your right to file a claim for a refund. Belmont Thornton has a specialist team waiting to help you so give us a call on 0207 471 2000. This is a free consultation as we work on a no win, no fee* basis.

Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Post Code 
Claim Back Mis-Sold PPI Button

Why Choose Us?

  • TickAbsolutely No Upfront Costs. No Win No Fee*
  • TickSpecialist Claims Team Always On Hand To Answer Your Questions
  • TickQuick, Easy And Simple Process
  • TickU.K. Based Call Center
  • TickGuaranteed To Start Your Claim In 24 Hours

Loan claim: Building societies warn of house price bubble

The Building Societies Association (BSA) is the latest to warn about the potential house price bubble that could arise f...

Bank claim: Lloyds raised concerns on Co-op finances

Lloyds Banking Group was aware that the financial position of the Co-Operative bank was unstable, said Lloyds chief exec...

Loan claim: first time buyers locked out for a decade

First time buyers will have to save up their deposit on a house for more than ten years, according to research from the ...

Bank charges: Commission tackles issue of RBS

The weak position of the Royal Bank of Scotland (RBS) is damaging to the UK economy, according to the Parliamentary Comm...

Bank charges: Report says customers and taxpayers were failed

Customers and taxpayers have been failed by the financial sector, according to the final report from the Parliamentary C...

Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide