Mortgage higher lending fee is this PPI?

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
4 replies 6.5K views
billythefish007billythefish007 Forumite
2 Posts
Hi

We took out a Principality mortgage in 2006 and had to pay a "higher lending fee" to Pricipality.

Basically we had to pay over £2000 as the mortgage was for 95% of the value. However as this was compulsory and was in effect to cover an insurance does this qualify as mis-sold PPI or other?

In their (pricipalities building society) words

"The Higher Lending Charge will be used to purchase insurance protection, which is soley for our (principalities) benefit. Consequently you will not have any rights under the policy. If the property is sold for less than the debt outstanding to us you will still be liable for us for the shortfall. If the insurance company pays any money to us (principality) under the policy, they will have the right to recover from you the amount they paid to us."

Any suggestions?

thanks

B&B:beer:

Replies

  • dunstonhdunstonh Forumite
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    Mortgage higher lending fee is this PPI?

    No its not.
    Any suggestions?

    Nothing you want to hear. MIGs are legal, fair and the lender is free to charge them if they want.
    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.
  • Cheers had guessed I was on a road to nowhere! Is interesting that you have no option and could not opt to insure for the same risk independently. Thankfully we've made some good moves since then and shouldn't need to worry about it again!
  • dunstonhdunstonh Forumite
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    Is interesting that you have no option and could not opt to insure for the same risk independently.

    You are not paying to cover your risk though. You are paying to cover the lenders risk.
    Thankfully we've made some good moves since then and shouldn't need to worry about it again!

    Whilst virtually every lender had them in the 80s to mid 90s, they went away in the credit and housing boom. However, there has been talk of them returning again as the risks return to the lenders. So, keep your fingers crossed that they dont.
    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.
  • roonaldoroonaldo Forumite
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    you could of avoided it by putting down a bigger deposit, or had gone elsewhere for the mortgage, I remember purposely going to Nationwide for a 95% mortgage as they didnt charge it at the time.
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