PPI on mortgage...

james3333

hi all,
pretty sure that when i signed up to my mortgage 10 years ago i did not ask for PPI but in light of all the people re-claiming PPI just thought i would ask :
if PPI was on my mortgage would it show on my yearly statement as PPI or could it be buried in the mortgage cost itself?

dunstonh

if PPI was on my mortgage would it show on my yearly statement as PPI or could it be buried in the mortgage cost itself?

In the vast majority of cases it would be a monthly direct debit coming from your current account. In a small number of cases it would be collected each month with the mortgage but would appear on the mortgage statement (only a couple of lenders do that)

It cannot be buried or hidden. It is one of the reason why there are so fewer upheld complaints on MPPI.

james3333

dunstonh wrote: »

In the vast majority of cases it would be a monthly direct debit coming from your current account. In a small number of cases it would be collected each month with the mortgage but would appear on the mortgage statement (only a couple of lenders do that)

It cannot be buried or hidden. It is one of the reason why there are so fewer upheld complaints on MPPI.

thanks, sjust wanted to make sure i hadnt been misold|! but if it cant be hidden then i should be fine

crazyfinance

Hi james3333
It maybe worth you looking at it again,this is what happened to me.
I was not aware I had been sold a single premium policy.
It was not taken as a monthly payment and was hidden in our mortgage payment.

We have had our complaint upheld and are now waiting for a settlement figures from central capital :j

dunstonh

Single Premium PPI is considered bad 99% of the time. However, it too cannot be hidden. You have to borrow £x,xxx more to pay for it. So, it stands out like a sore thumb as you know how much you need to borrow and this will be thousands of pounds more on the offer letter, KFI etc. It is not hidden in the mortgage payment. It is a valid complaint reason but only a tiny volume of these single premium MPPI exist. When they do you would expect an upheld complaint decision.

james3333

crazyfinance wrote: »

Hi james3333
It maybe worth you looking at it again,this is what happened to me.
I was not aware I had been sold a single premium policy.
It was not taken as a monthly payment and was hidden in our mortgage payment.

We have had our complaint upheld and are now waiting for a settlement figures from central capital :j

Did this NOT show on your annual mortgage statement as a separate payment outgoing?
im with halifax are you?

dunstonh

Did this NOT show on your annual mortgage statement as a separate payment outgoing?

Single premium MPPI would not show on a statement as the money is effectively borrowed at the start to pay around 5 years premium in one go. So, if you asked to borrow £100k for a house, then the mortgage would be £105,000 with the £5000 being paid to the insurance. Hence why you cant miss it as the extra borrowing stands out.

The lenders themselves have never done it that way. It was only a small number of mortgage brokers that did it that way.

crazyfinance

james3333 wrote: »

Did this NOT show on your annual mortgage statement as a separate payment outgoing?
im with halifax are you?

No it did not show on our annual statement.

If it had showed as separate payment outgoing I would have at some point wondered what it was for...
We borrowed £x.xx and we assumed that was for our mortgage,we were not aware that in that amount and in our monthly payments was an amount for the ppi that was to run over 25 years.


It only became clear to us when we looked at our Disbursement Summary.
There it showed NET LOAN plus PPI sold by broker which gave us the GROSS LOAN.

Its always worth double checking