Refinancing is very useful especially if you intend to save more from your mortgage payments or you intend to accelerate your repayment as soon as possible to avoid additional costs. Refinancing binds you to a new set of terms and conditions and some consumers, like my friend, might be blind to see that a mis sold PPI had latched itself on the new policy.
It pays to check the agreement’s policy. Remember, once you sign up for a mortgage, even if you missed some terms and conditions, banks can use them against you in court. In a refinancing deal, it is important to see if there are “safety nets” in place in case the consumer fails to repay for their mortgage on time, or at a given time.
You might find there is a requirement to purchase payment protection insurance. This is still okay. However, if the financial institution binds you into purchasing an insurance policy they supply, this is when it might be mis sold PPI.
To consider an insurance policy mis sold, consumers need to prove they are ineligible or they do not need the insurance policy. Also, the clause that no single insurance policy will suit any person is proof that banks and financial institutions could not force you to purchase a solely-supplied insurance product.
So, the next time you intend to refinance, take a good look at your terms and conditions; a mis sold PPI might be lurking in there, waiting to pounce on you.