Mortgage Single Premium PPI

liberty_lily

Hi there,

I took out an unregulated mortgage in May 2006 which had upfront Single Premium PPI attached.

At the time I was told over the telephone by the broker that the PPI was optional and that I would be sent two agreements - one with PPI and one without, in order to decide whether to take it or not.

I was only sent one agreement - the one with the PPI.

I believed that my credit rating had caused them to change their minds and that to be approved for the mortgage the PPI had to be taken - as I was desperately in need of borrowing this money and time was of the essence I stupidly signed the agreement without querying this.

At the time I had other cover - critical illness and business cover through Scottish Widows.

My agreement was set out as follows -

Loan facility £53,230.00
Optional PPI £5,323.00
Total loan amount £58,553.00
Broker's fee £2,500.00
Loan admin fee £595.00
Monthly interest rate (variable) 1.21%
Mortgage rate 14.52%
No. of payments 300
Monthly payment (variable) £728.23
Title indemnity fee £135.00

There was no mention of the actual cost of the PPI - it was not listed separately on any of the paperwork I received.

I repaid the mortgage in full in November 2007 and am now in the process of trying to reclaim both the PPI (which I believe was mis-sold) and the late fees and arrears charges applied over the course of the mortgage. The lender has refused to refund any charges and the FOS won't touch this, although they are looking at my PPI complaint.

From what I have read there doesn't seem to have been much success in having either mortgage PPI or mortgage charges refunded.

Neither is there much anywhere about unregulated agreements.

I have read that the addition of mis-sold PPI could possibly render an agreement unenforceable but I presume this applies to regulated agreements only?

Any advice would be most appreciated, thank you!

liberty_lily xxx

di3004

Hi there

Hope this gets sorted out, and will leave this one for Dunstonh to respond to, good luck.;)

dunstonh

From what I have read there doesn't seem to have been much success in having either mortgage PPI or mortgage charges refunded.

There is not so much success in MPPI when its monthly and paid from a bank account. That is how it should be.

However, there is a lot of success when its single premium and added to the debt and charged interest on as there is no reason for that to be the case. The FOS rule in the consumer's favour in over 90% of MPPI single premiums.

di3004

Great timing Dunstonh, I only just posted that above lol.;)

liberty_lily

Hi di and dunstonh,

Thank you both very much for your comments. It's very reassuring to hear that the FOS succcess rate with Single Premium mortgage PPIs is so high:D

Sorry to be a pain, but can either of you recommend a course of action regarding the charges that were applied to this mortgage please?

The FOS has said they cannot deal with this complaint as the agreement dated from pre 6th April 2007, before which point the CCA was not under their jurisdiction.

I am slightly confused over all this because of it being an unregulated agreement - I know the upper limit has changed/been removed but as my mortgage was settled in November 2007 this obviously doesn't apply.

I understand that if not covered by the FOS you can complain to the FLA, but I haven't come across any success stories via that route.

Many thanks again!

liberty_lily xxx

pinknico

This is from an FOS result on claiming back PPI so it may be possible that if you win mis selling the charges will be removed as part of the final calculation:

default charges

Mrs Q had got a little behind with her loan repayments. The lender had added default charges, and subsequently interest on those charges. We required the financial business to arrange for the restructuring of the loan – and to write off any charges (and any interest on them) which would not have arisen, if the monthly payment had been the lower amount that would have applied if there had been no PPI policy.

liberty_lily

Hi pinknico,

That's very interesting - many thanks!

liberty_lily xxx

dunstonh

the complaint against the loan falls outside the remit of the FOS. However, the PPI doesnt.

liberty_lily

Hi dunstonh,

Do you have any idea if it is worth pursuing the FLA route please?

I presume that the fact the the PPI was more than likely mis-sold has no bearing on the enforceability of an unregulated agreement?

Thank you,

liberty_lily xxx

dunstonh

Do you have any idea if it is worth pursuing the FLA route please?

I presume that the fact the the PPI was more than likely mis-sold has no bearing on the enforceability of an unregulated agreement?

Thats not really within my area of knowledge.
My guess is that being unregulated leaves you weak on that front. Also, despite the all hype, very few agreements get made unenforceable. That is why you see them reported in the press when they do.

liberty_lily

Hi dunstonh,

Thanks for your reply - I guess I'll give the FLA a try for the charges and if that doesn't pan out then I will have to consider a court claim.

Thanks again,

liberty_lily xxx