Payment Protection on Mortgage
The largest payment which most consumers will ever make in their lifetimes will be a mortgage payment on their homes. This is especially significant to a first time homebuyer as they are rightfully concerned about losing their home in the event of an illness or redundancy which renders them unable to make their mortgage payments.
In response to this concern most lenders began to offer customer's payment
protection on mortgages. Payment protection covers the insured person against
loss of employment by stepping in to take over repayments.
Problems with mortgage payment protection
Although payment protection can be a valuable product it is not suitable
for everyone. If, for example, the customer is over sixty-five or is
self-employed they are probably not eligible for the insurance. Because of a
lack of training and product knowledge, though, many people in these
circumstances were sold the cover. If this happended to you it may be deemed as
mis-selling and you may be entitled to payment protection refunds
How Payment Protection on Mortgage Affects Cost
The cost of mortgage payment protection is usually around Â£3-Â£7 per Â£100 paid in
each installment. That means if you mortgage repayments are Â£800 per month you
may pay between Â£24-Â£56 per month for the cover. That is the equivalent of
Â£288-Â£672 per year. Over the life of a mortgage this can obviously really mount
up so it is important to think carefully about whether you really need this type
of cover - if you are entitled to sick pay from your employer, have adequate
savings or cover in place elsewhere then you may not.
What to do If You Have Been Mis Sold PPI on a Mortgage Loan
If you believe you were sold your mortgage payment protection policy
without the full costs or terms being explained ypu may be entitled to make
payment protection insurance claims.
If you would like help with this process, speak to our team today on 0207 471
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