Question regarding title insurance/added to mortgage?

diannecro

Hi everyone
Can anyone help ? maybe a mathamatical brain
We took out a mortgage with mortgages plc 5 years ago they transferred it to kensington after the first 2 years was up, this was intrest only for £142k over 10 years that is another story!
At the time they insisted we had title insurance for £150 this was added to mortgage, my solictor was unhappy about this and said this would cost alot more than £150,
I phoned london and european to ask if it was normal to add to mortgage and could we have a paid a one off premium they said we could.
So I have sent off a sar request to mort plc pointing out my issue,
Does anyone think iam and right? and how would i work out what this would cost us over time I tried one formula and arrived at 4200?
Thankyou for any wise words

dunstonh

At the time they insisted we had title insurance for £150 this was added to mortgage, my solictor was unhappy about this and said this would cost alot more than £150,

Whilst fees can be added to the mortgage, the choice whether to pay them directly or add them is yours.

So I have sent off a sar request to mort plc pointing out my issue,
Does anyone think iam and right?

Depends on what the documentation says. I suspect there will not be anything to say you have to add it to the mortgage.

and how would i work out what this would cost us over time I tried one formula and arrived at 4200?

Assuming your complaint was successful, you would need to pay £150 to clear the insurance and they would refund the interest charged over the 3 years which would give you a refund of around £39. Not sure where you got £4200 from. Unless you missed the decimal point and meant £42.00

diannecro

Thanks for that, no the solictor was under the impression they would not go ahead otherwise surely if you add 150 to 142k over 10 years this based on intrest over 10 years etc this would cost alot more than 150?I worked out if this was a one off ppi on a loan over 10 years surely this would cost alot more example mortgage 141850 with insurance 142000?

dunstonh

solicitor probably made a mistake. You havent paid £150 over 10 years. Even if you did it wouldnt be anywhere near as much as you thought. You said it was 3 years ago.

It isnt PPI.