More money saving help..... Please

GirlRacer_2

Well I'm still finding ways to cut back and wonder if any of you guys can help me out. I currently have a mortgage protection insurance premium for £150,000. My current mortgagte is with the Halifax for £70,000 and I have a secured loan with GE Money for £35,000.

I also have Payment Protection on the GE Money loan. Can I cancel this, if anything should happen to me the mortgage protection premium I have would more than cover both loans.

WHat are your views?

immoral_angeluk

Would you be able to take out a new mortgage protection premium for £105000.. cancel the PPI on the loan and make a saving on both each month?

medman

I think payment protection insurance is an expensive way of protecting only one loan/OD/CC balance. You are far better off cancelling them all and getting a single stand alone Income protection policy.

PPI protects the lender not you whereas income protection safeguards all your commitments and not just a loan, and they are usually cheaper.

MM

GirlRacer_2

I've only just taken out the new payment protection - was previously paying the Halifax £65 per month for £73,500 protection. Now pay £11 for £150,000 protection. So already making a big saving, I just thought that maybe I could save an extra £17.80 on the mortgage protection for the secured loan. Would I be allowed to cancel it, do you know? Have tried phoning them (only just had the idea) but they're closed.

Snaggles

If you have literally only just taken it out, there may be a cooling off period?

GirlRacer_2

Mmmmm, certainly given me something to think about. Will be on the phone to them tomorrow asking if I can cancel the PPI. I note on the credit agreement that it says 'Additional Loan for Payment Protection Plan' and the amount is £5340.00. If I am allowed to cancel it, what will happen to this amount? Will it be deducted off the actual loan?

medman

The short answer is yes....provided you cancel within the "cooling off period"

I think the practice of rolling up the premiums and adding £5340 to your loan where you will be charged interest on it is criminal. I would definitely bin it and shop around for alternative policies. Do a google search and there are loads of providers. You can protect £100 of monthly income from £1.35 pcm.

So provided you are low risk employment you could protect £2000 of net monthly income for £27 per month, and it's your income that is protected not their payment. PPI what a disgrace it is!!

MM

GirlRacer_2

Thanks for that Medman, I'll definitely look into that tomorrow.

GirlRacer_2

Just to update you all. The policy I have in place will actually cover all my debts so I phoned GE Money and managed to cancel my PPI saving me another £17.80 per month.

Thanks to everyone who posted with advice.