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Is PPI sometimes necessary to get a mortgage?

Hi!

We saw our bank the other day regarding a mortgage (they actually do a good rate and we thought it'd be easier to see them first anyway). Thing is, I'm quite a new director of a company and my wife is self-employed. As expected, the bank tried to sell us just about everything, but she also intimated that it's possible that because we're both self-employed our mortgage application might be refused it we didn't have PPI / life assurance. Is this true? Are they allowed/likely to reject it on those grounds? Would it help my application if I took it? (even if I cancelled it later)?

Cheers,
Matthew

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    no it's nonsense - the policy would have no effect.
  • dunstonh
    dunstonh Posts: 121,237 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    she also intimated that it's possible that because we're both self-employed our mortgage application might be refused it we didn't have PPI / life assurance. Is this true?

    It is actually a valid mis-sale complaint reason. You would think with all the bank mis-selling coverage there is now that they would have got their sales people to stop saying such things.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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