Belmont Thornton Logo
Claim Back Loan Insurance

PPI Mortgages

It is bad enough to realise you have been paying for payment protection insurance on a personal loan, a credit card or even on an automobile loan, but to suddenly find that you have been paying PPI mortgages for several years without knowing it is untenable. Given the fact that loan insurance can cost as much as 50% or more of the amount you are borrowing that's a significant amount above and beyond what you should have been paying. Although you probably would notice PPI mortgages charges because they are so high, it is conceivable that the lender misrepresented what those charges were for! In any case, if it is substantiated that you were mis sold mortgage protection insurance and have been paying on it any length of time, you could be entitled to a tidy PPI reclaim amount along with compensation in some cases.

Understanding How Premiums Are Paid on PPI Mortgages

One thing which many consumers aren't aware of is the way in which the lender 'gets you' when mis selling PPI. Unlike other insurance products, PPI mortgages cover is a onetime premium assessed when you close on the loan. So, for example, your home loan is for £250,000 and your premium is rated at 25%. This would mean that you are virtually paying £375,000 for a £250,000 mortgage loan if there were no interest involved. However, there is interest on that amount because the lender is paying the insurance company that onetime premium which is then amortised right along with your mortgage loan over the specified number of years, 20, 30, etc.

Where Lenders Make Their Money on PPI Mortgages

Bear in mind that during the first year/s of your loan very little goes toward the principle which means that you are paying almost all interest. But, the sad part about PPI mortgages is that the interest on £125,000 is enormous. That is profit which is realised 100% by the lender as the insurance company has already been paid. In fact, this is a good example of just why you would file a mis sold PPI mortgages claim against the lender and not against the insurance company - primarily because they didn't sell the cover but also because they have been paid by a third party! The insurance company has no idea how you were sold that cover, they just know you were.

Take heart that you do have recourse after having been mis sold PPI mortgages. You can file PPI claims against the lender to claim back anything you have spent and may also receive interest as welll. The only thing to remember is that onus of proof is basically on you unless it is a blatant case of mis selling PPI mortgages, such as if you are self employed, retired or perhaps excluded for a pre-existing medical conditions.


Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Town
County
Post Code 
Email 
Circumstances
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 www.gov.uk/moj/cmr number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B16, 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