Finally doing mine....

Pauly71

Hi All,

Please be gentle as it's my first post!!!!

I'm filling in my forms for PPI I paid on a mortgage several years ago - the bank involved has confirmed this and I have all the details from my credit report.

I was just wondering if there are any guidelines / standards as to the PPI repayment premium.

My example is as follows:-

Total monthly repayment - £286
Loan Premium - £231
PPI Premium - £55

Therefore I was paying around 20% of my loan premium on top as PPI.

This seems excessive to me or is this normal? The PPI was with the mortgage provider.

Kind regards

Paul.

boam

Paul,

MPPI is an insurance product specifically designed to protect your home in case you cannot make payments on your mortgage. Why do you think you was mis-sold?

Msny people confuse MPPI with PPI they are not the same.

Thanks

dunstonh

Are you sure that is PPI and not life assurance, critical illness cover and/or PHI?

Whilst you expect bank sold products to be more expensive than the whole of market product, that monthly premium is too high for MPPI. Most banks ran premiums around £4-7 per hundred pounds of monthly cost covered. So, the premium does not fit what you would expect for a £231 mortgage payment.

it would suggest it is something different or a segmented plan (made up of life assurance, CI cover, MPPI and/or PHI).

Pauly71

Hi,

For some reason the 'PPI' policy started about 2 years after I initially took out the mortgage and I do not recall requesting to set up a policy - I only noticed after I had a look at my credit report.

I also had a great sickness and redundancy package with the company I was with and funnily enough I was made redundant during the term of the mortgage but with my settlement and finding another job within a few months I never claimed. Probably as I never knew it was there.

Worth a punt I suppose!!

Regards,

dunstonh

For some reason the 'PPI' policy started about 2 years after I initially took out the mortgage and I do not recall requesting to set up a policy - I only noticed after I had a look at my credit report.

But is it a PPI policy as the premium suggests it isnt.

I also had a great sickness and redundancy package with the company I was with and funnily enough I was made redundant during the term of the mortgage but with my settlement and finding another job within a few months I never claimed. Probably as I never knew it was there.

Sickness packages dont really matter to MPPI. Its a major long term debt and a lot can happen in that time. Even the FOS have been rejecting complaints with 12 months sick pay when it comes to MPPI. Its a much better reason with loan and credit card (short term debts).

Pauly71

Hi Dunstonh,

I have a letter from the company stating that I did have a "PPI" policy with the mortgage - that's exactly how they worded it and I'm told to make reference to 'PPI-M' if I would like to make a complaint.

Regards,

Insider101

Pauly71 wrote: »

Hi,

For some reason the 'PPI' policy started about 2 years after I initially took out the mortgage and I do not recall requesting to set up a policy - I only noticed after I had a look at my credit report.

I also had a great sickness and redundancy package with the company I was with and funnily enough I was made redundant during the term of the mortgage but with my settlement and finding another job within a few months I never claimed. Probably as I never knew it was there.

Worth a punt I suppose!!

Regards,

This sounds like an odd state of affairs. PPI with a mortgage is generally a monthly premium policy which requires all the usual bumpf (signed direct debit mandate etc...) It is not "part of the package" in the way that loan or credit card PPI is. It is a separate monthly direct debit. Like your car insurance. It's pretty difficult in those circumstances to see how you can not know it is there, particularly if the policy started mid-term.

I suggest you ask for copies of the sales documents and try and get a bit more info before you go rushing into a complaint. If there is evidence there which shows that your memory is not reliable (which happens in a lot of cases) then any premature complaint could be finished before it has really got off the ground.

dunstonh

Pauly71 wrote: »

Hi Dunstonh,

I have a letter from the company stating that I did have a "PPI" policy with the mortgage - that's exactly how they worded it and I'm told to make reference to 'PPI-M' if I would like to make a complaint.

Regards,

Is the policy multi-segment? For example, Halifax's mortgage insurances have a multi-segment plan where you can have a single monthly premium covering the life assurance segment, the critical illness cover segment, the income protection (PHI) segment and the MPPI segment. You can have any one of those segments or any combination. This is similar with a number of lenders.

Who is the direct debit for the insurance to? (it may help identify
if its likely to be a standalone MPPI or possibly a multi-segment policy).

This info will aid you in your complaint as you dont want to make a PPI complaint only to find out your policy is not fully MPPI but is 2/3rds life assurance and/or CI etc. Also, if it was sold post mortgage sale, then its possible it was under an advice process. These tend to have much better audit trails. Especially post 2005). So, getting facts right as much as possible before you make your complaint iis a good idea.

Pauly71

Many thanks for the good advice.

The mortgage started in 2000 until 2007 but the insurance started in 2002.

I'll have a good dig around to see what I can find before jumping in.

It's just that the premium is so high that has got me wondering really as the mortgage was for less than 40k.

Many thanks again.