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Mortgage PPI - need advice please...
LazyDee
Posts: 1 Newbie
Dear All, Any advice would be welcome. My mother has asked me to help her look into PPI on her mortgage. The Mortgage was taken out as and endowment policy in 1990 and has long since been completed. We have requested information about it and I've received a document that spells out the following...
Interest Rate - 14.5%
Gross Monthly Mortgage Payment - £265.83
Less tax relief at 25% on £22,000 - £66.46
Monthly premium for life policy - £71.75
Waiver of Premium - £2.15
Total Monthly Outlay - £273.27
Does anyone know if the premium mentioned is a type of PPI and what the waiver is?? I'm completely stuck as I have no knowledge of mortgages or the terminology used.
Many thanks
Interest Rate - 14.5%
Gross Monthly Mortgage Payment - £265.83
Less tax relief at 25% on £22,000 - £66.46
Monthly premium for life policy - £71.75
Waiver of Premium - £2.15
Total Monthly Outlay - £273.27
Does anyone know if the premium mentioned is a type of PPI and what the waiver is?? I'm completely stuck as I have no knowledge of mortgages or the terminology used.
Many thanks
0
Comments
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Neither a life policy, nor Waiver of Premium on the policy is anything like PPI.
So no, it's not PPI.0 -
1990 was a bit before my time in financial services, but Waiver of Premium in todays world is like an insurance policy for the insurance.
So the premiums on the life policy were £71. If your mum was unable to work, the waiver would have kicked in and paid the £71 a month.
None of what you have mentioned are PPI.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Does anyone know if the premium mentioned is a type of PPI and what the waiver is??
The premium is the life assurance policy. Life assurance is not PPI. The waiver of premium option is a bolt on to life assurance. If she long term ill, the life assurer will take over the premiums for as long as necessary. Wavier of premium is not PPI.
The tax relief is due to MIRAS. A blast from the past but has nothing to do with PPI.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.0
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