ROOF Blog

Fears that millions of homeowners could soon be paying a heavier price for rising unemployment have been fuelled by the news that more than 20,000 people have, this month, seen the cost of mortgage payment protection insurance (MPPI) jump by about 20%. Yorkshire building society has pushed up the cost of its mortgage PPI in a move it says will typically add about £46 to the amount borrowers pay each year. The actual increases will vary, depending on the type of policy. The Yorkshire’s new mortgage PPI provider, Cardif Pinnacle, said that the cost of providing this cover ‘has risen to record levels’ following a huge increase in claims, presumably from homeowners losing their jobs.

Hundreds of thousands of homeowners could be in line to collect hefty refunds for unfair mortgage charges as lenders face being forced to hand back millions of pounds in fees imposed on customers who missed their monthly loan payments. One firm has been fined £2.8million and made to return £7.7million to borrowers when it was found to have acted unfairly. The crackdown by the Financial Services Authority is likely to lead to claims by hundreds of thousands of home owners who believe they have been harshly penalised.