PPI Claims on Home Mortgage Loans
A huge number of people who took out a payment protection insurance policy when borrowing money with regards to mortgage could be entitled to ppi claims for that amount they were forced to pay. The Office of Fair Trading first released its investigation in to the financial market and a number of individuals have been successful with ppi claims if they felt these were not properly made aware of how much the policy would cost them and what it would cover. A number of ppi claims have been made recently in the current months with a few financial institutions and were forced to pay out their clients?compensation.
The actual amount of your ppi claims vary depending on the size of the loan on which it was taken, the length of the deal and also the exact details of the policy you signed on. Sometimes, ppi claims can be calculated as 20% of the customers typical monthly repayment multiplied by the number of times a policyholder paid.
Anyone who is thinking of applying for a refund need to note that the size of ppi claims may vary with regards to the products on which they were taken. Sometimes, ppi cost on loan agreements is paid with a one off premium as part of the loan itself. It ensures that the interest rate of the loan can also be charged on the ppi. The Citizens Advice Bureau (CAB) published figures which highlighted the different abuses being conducted by the banks and lending companies selling ppi in its special report in 2005.
CAB collated each of the evidences from various financial customers to help with their Protection Racket Report and it indicated that customers were hit with ppi charges. A variety of case studies showed that the ppi premiums of 2,217 pounds on an unsecured personal loan worth 8,993 pounds, at 25% of the value; 744 pounds charged on a 5,600 pounds unsecured personal loan at 13%; and
5,133 pounds, at 47% charged for protecting with an 11,000 pounds unsecured loan.
A secured loan for 25,000 pounds included a ppi premium of 12,127 pounds at 49%, while hire purchase for a car with a total of 5,059 pounds was raised by 43% through 2,157 pounds on ppi premiums.
Figures was released by the Council of Mortgage Lender (CML) says gross mortgage lending decreased to an estimated 9.2 billion pounds in January 2011. This established that a drop of 13% on the figures in comparison with December 2010 when lending stood at 10.6 billion pounds. However, these numbers also revealed that gross mortgage lending has increased by 5% when compared with January 2010.
There are plenty of ppi claims with the mortgage lenders due to overpricing of the insurance policy being sold alongside the borrowed funds. This could probably the reason behind the change in figures on the report. As we all know, ppi cost may vary with the type of loan you took, so the cost might be very costly if you took a larger amount of loan for your property finance loan.