Belmont Thornton Logo
Claim Back Loan Insurance

Compensation over Self Certified Mortgage

Payment protection insurance (PPI) is for borrowers who wish to ensure that their payments on a loan or mortgage will be made in the event they lose their source of employment. A self certified mortgage is a mortgage in which the borrower does not have to prove his income to get approved for the loan. The problem with payment protection and self certified mortgages is the borrower is not proving income either because they are self-employed or have income coming from several different sources making it hard to prove that income. Keep in mind that self employed persons are not eligible for PPI!

Reasons to Get a Self Certified Mortgage

Mortgage brokers tend to lend on the basis of salary declared on paychecks. Some borrowers however may not be able to provide the standard proof of income. These borrowers are people who own their business or have multiple sources of income. The only problem with self certified mortgages is that the borrower's income tends to fluctuate with the economy, mainly as a effect of being self-employed. Given the fact, that a borrower's income may fluctuate vendors are hesitant to approve borrowers for fixed mortgages that cannot prove the income. These factors alone can make someone feel pressured to get PPI compensation over certified mortgage in an attempt to create a safety net for their house but unfortunately the lender should never sell PPI under these circumstances as the buyer is just not eligible for cover.

Why Stay Away from PPI

Payment protection insurance is intended for borrowers who want the peace of mind that comes with knowing that even if you become ill, have an accident or lose your source of income as a result of involuntary unemployment that your mortgage and or credit card payments will still be getting paid. The only drawback to this is that in some cases people were mis-sold the payment protection policies by not letting the person know what qualifies and/or disqualifies them from being eligible, not disclosing the structure or payment scale of the policy in regard to the loan, or secretly placing the protection in the loan agreement. A person who has a self certified mortgage will not be eligible for payment protection claims as a result of them being self-employed because there is no way to guarantee that they make the same amount of money week after week, month after month.

Why to Cancel PPI for a Self Certified Mortgage

Borrowers with self certified mortgages are generally stepping out on limb when applying for and especially when approved for a mortgage loan. The lenders know that these borrowers have no proof of income, therefore, they make special stipulations in the loan and ask for more money down and charge higher interest rates. If a borrower has PPI and a self certified mortgage they don't tend to get PPI compensation over self certified mortgage usually because a borrower must have a job to be approved for PPI. When the borrower is pressured by the lender to purchase PPI he/she may think that the insurance may be beneficial to them if it would give them PPI compensation over self certified mortgage. PPI can be mis-sold even when the person has a verifiable form of income, whereas, PPI compensation for self certified mortgage would always be mis sold.

If your lender coerced you into PPI knowing that you are self certified for a mortgage, your legal recourse is to file a PPI claim against that lender. For details on how to file a claim effectively, consult with the claims team of Belmont Thornton on 0207 471 2000.

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 16, Elysium Gate, 126 New Kings Road, London, SW6 4LZ 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