How to Get Rid of PPI On Your Home Mortgage

Have you ever heard of the term “PPI”? Whether you have heard of it or not, chances are that you are paying it! The most common form of PPI (payment protection insurance, also referred to as PMI – payment mortgage insurance) is on a home loan. If you make a down-payment of less than 20% of your home value, then the bank will almost certainly require you to agree to PPI payments each month. These payments are a sort of insurance policy for the bank. Your extra payments are padding their pockets in the event that you default on your loan and the house is no longer valued at the amount it once was. From their viewpoint, they hope that the additional payments will insure that they will not lose money on your loan. While these payments are often not all that large (typically £100 or less), they sure can add up over the course of a few years.

So How Can You Get Rid of These Additional Payments?

Not only are you making interest payments on your loans, but the bank has you paying these PPI payments as well, which is causing you to stay broke. In order to keep your cash in your own pocket you must learn to eliminate these senseless fees. The easiest way to eliminate the PPI is to pay off 20% of your loan. At this point, you can call your bank and ask them to kindly remove the additional PPI payments from your monthly loan amount.

The second way to remove the PPI payments on your home is to get it reappraised. If the value of your home increases, then you have just increased your equity in that home. If the equity amount is large enough, the bank may just remove the PPI payments.

What If You Have Been Making PPI Payments in Error?

It happens all too often that the bank somehow forgets to remove your PPI payments from your loan, or that they have you making those additional payments when you never needed to in the first place! If you suspect that you are making PPI payments out of error, contact a PPI claims company and they can assist you in recouping your lost money (plus interest at times). The below infographic may assist you in your discovery of your accidental PPI payments.



Menu Planning #15

As you know we’re staying with my Mum right now. Mum doesn’t do a lot of cooking and so to make things easier I’m doing all the grocery shopping and food preparation. Mum is happy about the kitchen takeover!

On our simple menu plan this week:

Mum's fridge

I took over the fridge too!

Monday: Pizza & Salad

Tuesday: Breaded Haddock Fillets with Salad & New Potatoes

Wednesday: Cheese & Onion Pasties, Mash and Baked Beans (Easy dinner!)

Thursday: Roast Chicken and Potatoes with Spinach & Broccoli

Friday:  Leftover chicken

Saturday: Sausages, Mash and Onion Gravy

Sunday: Breakfast for dinner

What’s on you menu this week?

Top Tips for Borrowing Money

There was a time when the only way to borrow money without some form of security was by taking out a personal loan or applying for a credit card with a traditional financial institution such as a bank. But that has all changed, as there are now hundreds of options on the market including online peer-to-peer lending platforms, which means you can take your time and choose the option that best meets your needs. However, it’s important to remember that committing to regular personal loan repayments is a big step, so a few precautions and a little preparation are necessary before you sign on the dotted line.

1. Take a look at your credit rating

Too many people wade into loan applications without first checking the status of their credit history. The UK’s record of loan repayments and debt levels not only has a direct impact on our ability to obtain credit, but it is often a critical factor in determining the interest rate you will be offered by lenders.

Now, it’s important to understand that credit files are only as accurate as the information supplied to them. If your credit file is inaccurate or out of date in any way, it will probably remain that way until you do something about it. Look for inaccuracies in your credit report, and work with one of the major credit reference agencies to have them removed. Then, when you apply for credit, you can be reasonably certain that you’ll be offered the best possible rate of interest for your circumstances.

2. Don’t borrow for longer than you need to

The facts in this regard are simple: the longer the loan term, the more you’ll pay in interest. Taking out a loan for the funds you need over a shorter length of time will inevitably lead to higher monthly repayments. But it is still important to look at the long-term picture in terms of how expensive your loan will be. Work out what you can comfortably afford to repay every month, and choose the shortest loan term that is within your monthly budget.

3. Do a little interest rate digging

During your search for a loan, you will undoubtedly come across representative APRs which are used to demonstrate what the typical rate of interest for a loan product is. This is the rate that at least 51 percent of borrowers will end up paying, but you should be aware that the actual rate you are offered could be significantly higher. Read the small print of any loan agreements you receive before signing anything. If you plan to borrow money online, use loan calculators to work out how much borrowing will cost you each month. Depending on your individual circumstances – job, salary and credit history, you may end up paying a rate much higher than the headline APR.