Knowing And Understanding The Different Mortgage Product Types

December 17, 2013 by thesugar | No Comments | Filed in PPI Advice

There are different mortgage product types available in the market. The different types of mortgage products are determined on its repayment method. Each has their own pros and cons. Your loan provider will assist you in determining which type of mortgage loan is best for you.


To provide you some background on the major mortgage product types available, below are the quick summaries:


Conventional Mortgage


One of the most common mortgage product types is the conventional mortgage. This term is used for a mortgage that meets the credit standards and guidelines on maximum loan amount of Freddie Mac and Fannie Mae. Both of which are the largest mortgage agencies that set the standards. Their standards are usually followed by most lending agencies. Conventional loans offer a maximum amount of $417,000.00. Though, this amount can be adjusted annually. Loans can be used for refinances or purchases, and both adjustable and fixed rate loans are available.  Most often, conventional mortgage loans have lower rates, compare to other mortgage products.


Jumbo Mortgages


A Jumbo mortgage is used to refer mortgage product types which surpass the maximum loan amounts for conventional loans.  According to the note written on January 1, 2006, a jumbo loan comes with a one-unit property of the mortgage which exceeds approximately $417,000.  The interest rates of Jumbo loans are generally higher than the mortgages on lower loan amounts. In a real sense, you may find that breaking mortgage transactions into a first mortgage does not exceed the maximum amount of conventional loan, and a second mortgage for the remaining amount required, may be more lucrative than a jumbo loan. Both adjustable and fixed rate loans are available.


FHA Mortgages


From the word FHA, the FHA Mortgage is insured by the Federal Housing Administration.  Generally, these mortgage product types are designed to make your purchasing easier for first time buyers with less stringent credits and lower down payments than conventional loans. While the expenditures of an FHA mortgage are often higher than a conventional mortgage, they are a good option for first time home buyers, high debt loads buyers, or those who have some credit issues. This “streamlined” features faster processing time and reduced paperwork. Both adjustable and fixed rate loans are available. These loans are subject to limitations of maximum loan amount based on the vicinity in which you are refinancing and purchasing a.



VA Mortgages


VA Mortgage is a mortgage available to former and current members of the United States armed forces. It does not need any down payment with easier credit requirements, and can also be used as an excellent option for those who qualify.


Subprime Mortgages


One thing good about subprime mortgage is the blemished credit being offered to individuals.  While these mortgage product may be suitable in certain situations, it is your best interest not to be certain that you will not qualify for other financing types such as FHA loan before you accept any subprime financing. The interest fees and rates are generally higher than other mortgage product types. The adjustable rate loans are offered to make the initial payment appear lower, but rates may increase quickly after the first 6 months.

Fixed Rate Mortgage


Throughout the entire term of the loan, the interest rates on fixed rate mortgages do not change. While your total mortgage payment may slightly change based on changes in the homeowner’s insurance components and property tax on your mortgage payment, the interest and principal portion of your payment remains unchanged. The amount of your mortgage payment is highly predictable with this type of loan.  While the rates are higher than the rates on adjustable mortgages, you may be interested in a fixed rate loan for smaller loan balances. A fixed rate mortgage can be obtained as a jumbo, conventional, VA, FHA, or even subprime loan.


Variable or Adjustable Rate Mortgages (ARM)


The interest rate of an ARM can change over time, with the interest and principal portion of your mortgage payment fluctuating up and down in response to changes. The initial interest rate on an ARM is lower than a fixed rate mortgage, resulting in lower monthly payments.  The interest rate is fixed for a certain period – one, three, five, seven or even ten years - before the rate starts to adjust annually. If you have a higher loan amount, an ARM is worth considering. An ARM can be a jumbo, conventional, FHA, or subprime loan.





Frequent Matter And Factors To Ponder About PPI Claims History

December 17, 2013 by thesugar | No Comments | Filed in PPI Advice

Payment Protection Insurance or PPI has been a controversy for the past years. Today, insurance and bank companies are assessing and are presently improving their process of PPI claims. At this point in time, before we continue to discuss the process of PPI claims, let us first discuss what a PPI is all about and what is the PPI claims history to have a clear picture.

PPI For Beginners

Before we tackle about how to make PPI claims, we need to understand PPI claim history for the starters to understand it better. Payment Protection Insurance is abbreviated as PPI. It is an insurance policy that is created specially to assist someone to maintain their payment or loan of their credit cards in the event when the person (who applies for PPI) cannot make payments as a result of misfortunes.

PPI Today

Too many people are requesting for PPI claims, but only a few were not actually prepared to get one, because most people did not browse or read the terms and conditions in it. In association, they know nothing about PPI claims history and how it will affect the process. If you are planning to provoke a PPI claim, it’s important that you first examine your personal factors to see if you are eligible for a claim. Personal factors include the age when your PPI was sold, your status in life and your health conditions.

Your Age When PPI Was Sold

PPI plans will be sold to people who are eighteen to 65. Therefore, when you are younger than eighteen, you may have a legitimate claim for missold PPI. Furthermore, there are PPI plans where the claim might not be created if you haven’t reached that age threshold. If in case you exceeded the required range of age, your PPI claims would be ineffective. So, make sure your age is qualified for an insurance policy.

Are You Retired, Self-Employed Or Unemployed?

You should know that according to PPI claims history, PPI is of no value once you had taken it out by the time you are already unemployed, self-used or retired. Those who are working on a 0.5-time would not be eligible for PPI. Furthermore, working people on a transient term contract to end up jobless in the future are not eligible for PPI conjointly.

Medical Drawbacks When PPI Was Sold 

If you signed the PPI and had health issues and some other qualifications that would possibly lead to termination of your current employment, then you had missold PPI. Reimbursement is acceptable; however, it would depend greatly on the type and kind of insurance company you are transacting with. So, this is another factor to consider. If you are planning to get a PPI claim and this has been confirmed true, then chances are you will not be permitted.


Solutions To Other Problems
If you are certain that you got an incorrect PPI insurance plan, lost the required papers, cannot recall the credit card or loaning corporation, you can still continue to file for a PPI claim as per PPI claims history. This can be done because your credit history can retrieve the data on the active loans or credits that for the previous 6 years. Six years is the amount of time that credit reporting agencies should keep details on their debtors. If you want to know your credit history, you can check out the businesses that provide reference information. Remember to file your claim within 6 years after you believe you have made your PPI insurance policy.
PPI claims history allows the lenders that have been cleared or were presented as defective PPI policies to be completely compensated, once verified that they were mis-sold. When filed correctly, the PPI claims can safeguard unsuspecting customers from paying what they owe to the loan companies, in cooperation with other financial institutions.

These are only some of the factors you want to consider. Understanding these terms and conditions can help you find out if you are qualified for insurance claim. If all things fail, remember that it’s not the end of the world. There are still factors to consider. So it’s extremely important to know the PPI claims history before applying for PPI.

To find out more on how your ppi claims made simple works please visit our dedicated website.



Find the best and cheapest buildings and contents insurance today

May 21, 2013 by thesugar | No Comments | Filed in Insurance Advice

Buildings And Contents Insurance: You Just Need to Prepare for the Unexpected

When you talk about protection, it is not only the individual that needs protection but something more. If you own property you may need buildings and contents insurance. Even if you structure is situated in a safe area, you will never know when disaster will strike. This in essence is the rationale of buildings and contents insurance. You insure your building from fire, earthquake, floods and other acts of God. At the same time you insure the contents inside the building. All contents that are movable can be covered by the contents insurance.

There is cover for your Structure

The most important portion in buildings and contents insurance is protection for your structure. You building is generating income, in the case of commercial and industrial buildings. Even residential structures can generate income if they are being rented out. You need to purchase insurance equivalent to the value of the building as approved by an insurance appraiser. If you structure is burned down due to an accident, or destroyed by an earthquake or washed by flood, the insurance provider is liable to pay you the face value of the insurance.

There is cover for your Contents

In some cases, the contents inside the building may have more value than the building itself. It is always advisable to insure the contents. In buildings and contents insurance, both the building and the contents are insured. If the building meets a disaster and all the content gets destroyed, you can file for a claim with the insurance provider. You will be paid the amount of cover for the building and for the contents. These are separate amounts, so it is good to have separate insurance coverage. Some policies are integrated but the amount of cover for the building and its content are presented individually and clearly separate.

There is cover for most Disasters

The most common protection for buildings and contents insurance is fire protection. This means that if your structure is destroyed by fire, the insurance provider pays you a certain amount. Lately however, natural disasters called acts of God have become commonplace in many parts of the world. You still need to have protection from fire hazards but then you need to add flood protection, earthquake protection and even lighting protection. If you can have protection for all types of acts of God, then so much the better. As many financial experts say, it is better to have excess insurance cover than to be under-insured.

When you need to prepare for the unexpected, there is no other type of insurance that can give you such a protection. While this type of insurance is simple, there are inclusion and exclusion clauses, that you need to read before signing your name of the policy. Make sure that your intended protection is there and the corresponding policy value is also there. Only then should you sign your name on the dotted line. Separate protection for your building and its contents are essential. There may be instances when the contents can never be placed in safety. You need to invest in contents and buildings insurance.

The UK Banks have been caught again with the interest rate swap scandal

April 8, 2013 by thesugar | No Comments | Filed in PPI News

Interest Rate Swap Scandal: How Banks Profited From It

Things are not going well for banks involved in theinterest rate swap scandal. Claims can reach to a billion Pounds if regulators decide in favor of claimants. How did the mis selling occur? How do banks profit from the rate swap deals? Rate swaps are simple transactions on the surface.  You protect your interest rate by from future increase by fixing the base rate of your loan. Swaps can be from fixed rate to variable or from variable to fixed depending on the complexity of the transaction. While swaps ought to benefit the customer, in many cases they do not.

They Will Recommend To You Lower Rates

The bank will always recommend to you lower rates, so it gives you an interest rate quotation for a specific term like 5 years. Unknown to you, the bank has been shopping on the interest swap market and has seen the rates, added an interest profit and offered you the loan. While the rate may seem low, in reality the bank has more to gain from the swap than the customer. The customer can only gain if interest rates remain high. If interest rates fall, the customer is left with high interest expenses.

They Will Sell Your Loan in the Swap Market

Since customers have no access to the interest swap market, you will never know that the bank will sell your loan. The longer the term of your loan, the higher the profit will be of the bank from the transaction. If you want lower rates from what the bank initially offered, they will tell you to make a hedge. They will tell you to lock the rates for a longer period but the interest rate will be lower. If you lock your loan to 10 years or even 30 years, the rates will be smaller but you put yourself at risk. You cannot withdraw from the deal without incurring penalties. This is what happens in interest rate swap scandal.

They Will Get the Profit by Longer Dated Swaps

Banks do not transact if they do not get a profit from it. The same is true in interest rate swap scandal. By convincing you to get a longer swap at a much smaller interest rate, the banks will immediately make a huge profit, once the deal is done. In a 5 year interest rate swap, banks can earn around 25,000 to 50,000 Pound for a 1 Million Pound loan. However, if the swap becomes longer dated, like 30 years, the interest rate may fall from 6.25 for a 5 year swap to 3.0 percent for a 30 year swap. This does not mean the customer gains but the customer loses in the long term.

Banks profit by trading your loan in the swap market. Customers often do not understand the complexities of the transaction and when they find that they got the lower rates, they approve the swap. Later on however, the customer realizes that he has been short-changed and want a way out but it does not come without the penalties. This is what it is in interest rate swap scandal.


Supermarket Car Insurance in the UK | Best deals on car insurance here

April 3, 2013 by thesugar | No Comments | Filed in Insurance Advice

Supermarket Car Insurance: It Is A Legitimate Insurance Supermarket?

Shopping for insurance for your car is fast and easy at Supermarket car insurance. It is available online so you don’t have to leave the luxury of home to make your transaction. This company acts as your broker for car or truck insurance coverage. What it does is that it presents you with the current deals and offers from insurance firms offering auto and truck coverage. It has also insurance products for speciality needs like vintage car insurance and teenage automotive insurance, something that has become popular as most teenagers are driving their own cars. You can check the best insurance deals from different providers online.

You Need to Check The Ads

Since Supermarket car insurance acts primarily act as brokers, you need to check the ads that are posted by car insurance providers. There will be dozens of ads from insurance providers in the UK, Europe and even North America. The ads need to be checked if they are legitimate and legal. They also need to be checked whether it has not violated any consumer related regulations. Advertisements remain that way, until you make the transaction and enjoyed the deal. So while shopping around for that particular insurance cover that you desire, don’t forget to scrutinize what the ads is really about.

You Need to Check The Providers

Aside from checking the ads, you need to check who is providing the car insurance being posted. There will be big players and small players, big names and unknown names. In the insurance industry, the name of the provider is extremely important. Most of the big names pay insurance claims upfront with little hassle. Some small players however, may look for ways to deny claims for the simple reason that it paying claims may deplete their cash flow. But even big providers in Supermarket car insurance, need to be checked whether there are complaints from consumers or if they are involved in an insurance scandal.

You Need to Check for Complaints

The source of most complaints from consumers in regards to car insurance firms is the mishandling of claims. Cars or trucks that spend most of the time on the road have a higher percentage of figuring out in an accident than cars that are used to and from the workplace. Most claims are in the form of road accidents and other related incidents. You need to check how the insurance provider handles this type of situations. Do they handle it professionally? Do they pay the claim if it is legitimate?

No matter how many ads they post in Supermarket car insurance, it may not matter if there are complaints raised with the insurance regulator or consumer groups. Remember that ads and rates posted as quotes do not mean anything until you get your car insurance policy. You can shop for rates and insurance cover but then nothing is final yet. Before deciding on that policy, be sure to check the ads, to check the insurance provider and to check for complaints and misselling. That is the best thing to do with Supermarket car insurance.

Cheapest PPI Claim: The Trick of Sliding Scale Charges

January 27, 2013 by thesugar | No Comments | Filed in PPI Claims Latest News

There are many tricks that claims management companies use even when offering cheapest PPI claim. They disguise upfront fees, they do not disclose hidden charges and they have other tricks as well. Of all the tricks that can possibly deplete the refund of customers from claims, nothing is more destructive than sliding scale charges. These can come in different names and forms but the intention is the same. The intention is to get as much from the customer. It is like getting a bigger piece of the refund as much as possible. Many have been victimized by this kind of ploy.


When you decided to hire the services of a claims firm, you were actually unaware that they have prepared a set of fees to charge you. After the evaluation and the preparation of documents, they will charge you an administration fee. This is an upfront charge that is not allowed by the Ministry of Justice. If there are delays in your claim, they will charge you communication fees. As soon as your refund arrives, they will charge you the service fee. This can be as high as 36 percent. Recently however, there are some who are charging a mere 12.5 percent.


The percentage of the service fee can be misleading. Some charge the fee plus VAT, and other do not. Some use the final amount as the basis and others do not. Some use all the premiums that you paid as the basis of the computation of the fee. Other claims management companies are more innovative in making money. They use the amount you paid from the premiums plus the amount you should have paid in the future to complete your PPI coverage as the basis. If this happens to you, all your refund can be taken by the claims firm and you might end up with an accounts payable due to them.


Aside from this type of fee, there is also the sliding scale charge. A sliding scale charge is a charge that is based on a certain scale that the claims firm has provided for its own use. The purpose of this is to get as much from the customer, as much as possible. If the customer gets a bigger refund, the sliding scale charge is designed to get a bigger share for the claims firm. Many consumers have experience having very little money left from their refund due to this type of fee. In order to avoid such an incident, make sure what you are signing when you hire a claims firm.


Consumer groups are out to report claims companies that engage in this type of charging. Sliding scale charges puts the customer at a distinct disadvantage. By design, this type of fee is very beneficial to the claims firm. Their fee adjusts with the amount that the customer actually received. This is illegal because this is against the rules that provide protection for the consumer. The Ministry of Justice does not allow such a kind of charging. You can report if you become a victim. This charges are possible even with cheapest PPI claim.

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Lloyds TSB PPI Claim Refused: Some Claims Were Refunded Fast

January 7, 2013 by thesugar | No Comments | Filed in PPI News

Not all is negative feedback when it comes to Lloyds TSB PPI claim refused. In the midst of complaints of claims refusal and rejection, some consumer did experience fast and easy refund. One consumer posted on the web that claims management companies were calling and persuading him to avail for claims service. But he just decided to file the claim on his own. To his surprise, the claim was received, processed and refunded. The claim was for mis sold PPI on personal loan and credit card. The refund figure was actually posted at 11,000 pounds. This is quite amazing.

There may be some factors why some claims are refunded fast. One factor, is that the claim may have been received when the volume of claims were not that many. In such a case, processing can be faster. Another factor is that the banks may have been lenient when the claim was filed. This can be the biggest factor of all. If banks do not resort to delaying processing, then your claim can be ready for refund in no time. Even with the large volume of claims, banks have the capacity to process plenty of claims at one time. Most banks have opened new divisions and trained qualified personnel due to mis sold PPI claims demand.

What is amazing is that many consumers allege that they were paid in just as short period of time. Many were even surprised when they received an email or phone call, informing them of favorable response to their claim. Most of them however, filed claims that were not defective in any way. The circumstance was clearly established as mis selling and the documents to prove it were there. There was also no time lag involved. The claims were filed less than three years after discovering that they were mis sold PPI.

To get a favorable response, there are just some things that need to be firmly established in relation to mis sold PPI. First, if the optional nature of PPI was never addressed by the sales advisor, then this can be a strong basis for a claim which banks will find hard to deny. However, the evidence suggesting that such was the sales process need to be established. It is easy if your insurance policy was taken a few months or a few weeks ago. If a year or two years has lapsed then your evidence may become weak and may be used by the bank to deny your claim.

Another thing is that, if the policy benefits and exclusions were not explained well, then a strong case can be established for a claim. There are problems that consumers have to hurdle at this junction. Sales advisors have a sales script and if the benefits and exclusions are there but were not relayed to you, the burden of proof lies in your end. This is one reason why banks can reject claims easily. Such may be the case with Lloyds TSB PPI claim refused.

Payment Protection Partners Want A Slice of the Pie

December 11, 2012 by thesugar | No Comments | Filed in PPI News

The location of PPI Scotland is packed with customer convenience. Individuals who desire to file the PPI claim personally do not have to go far. With the ease with which requirements can be prepared, this can be helpful to you the customer. Forms can be downloaded for free from government websites and there is online help from consumer advocates. With such a surrounding, you might think that claims firms and claims partners are running out of business. You a dead wrong, payment protection partners still want a slice of the pie when it comes to PPI claims.

Why do some individuals hire payment protection partners, instead of doing the claim themselves? Claims firms have engaged in a massive ad campaign informing individuals that it is difficult to claim and the best alternative is to hire a claims partner. They also made a massive ad campaign of the “no-win, no-fee” deal. They even give a list of how convenient it is to hire a claims partner than doing the claim yourself. Some of the things they are saying a true and some are false of course. All they want to convey is that you hire them and they get a fee for their service.

These are some of the things that claims partners tell you, so that you get to hire them. They will say that even your old PPI agreement can still be entitled to a claim. The statement is neutral because that would depend how old your PPI is. If it is over ten years old, you may no longer be entitled to a claim. While most mis sold PPI happened during the past ten years, there is a cut-off date for certain types of claims. If your old PPI falls before the cut-off date, it may no longer qualify. So the statement of claims firms is not absolutely true.

The no-win, no-fee deal is the most abused of all statements made by claims partners and claims firms near PPI Scotland. Some stick to this deal to the letter. Most do not follow this deal. Many consumers were victimized by claims partners who say they follow the no-win, no-fee deal but ask what is commonly referred to as upfront fees. The Ministry of Justice does not allow this kind of arrangement. But claims firms go around the rule by saying that what they are collecting is a communication fee, or arrangement fee or mobilization fee. Whatever it fee it is, it is a violation of the no-win, no-fee arrangement.

It is true that payment protection partners want a slice of the PPI claims market so badly. They come up with all sorts of marketing stuff. One gimmick is that they will state that the minimum claim that they were able to process is four thousand pounds. This may not be true after all. Some even claim that the highest claim they successfully process run into more than ten thousand pounds. This may be an overstated statement. This is happening in PPI Scotland.

You Can Claim But To Whom

November 30, 2012 by thesugar | No Comments | Filed in PPI Advice

When it comes to financing your dream car, BMW and BMW Finance PPI is always there to offer you excellent terms and rates. If you are undecided on the car model yet, you can browse through the BMW website and investigate further the particular car model that you want to purchase. The next step will be the visit to the showroom or to the dealer in your neighbourhood. Dealerships have a wide array of models and if your particular choice is there you can just test drive it and decide. You can decide on the spot and do the paperwork.

In case you make your choice, the dealership has all the paper work needed for the financing term of your choice. You have to watch out however, certain add-ons to your financing charges. One of the most practiced add-on by sales people in the car dealership is front loading the PPI premium. If they do this to you, without informing you, it is a clear case of mis selling. An uninformed customer cannot make an intelligent choice and therefore PPI becomes mis sold and may be claimed later. Even if the car salesman informed you about PPI but insisted or tricked you by saying it is required when it is not, this constitutes another instance of mis selling.

There are usually no problems in regards to PPI when nothing happens. Remember that when you purchased your car with BMW Finance PPI may be included and car insurance may also be included. If your PPI was uploaded by the salesman, this will increase the amount of interest that you are paying. The PPI premium was added to the financed amount and this is where the interest is based. You end up paying more in interest and this is clearly a violation of the welfare of the consumer. Uploaded PPI is a clear violation of regulations and you are entitled to a claim.

In the event that you are mis sold PPI and you are absolutely sure about it, where can you make a claim? You can claim directly to BMW Finance if they sold you the PPI. There may be cases where the car salesman used another insurance company aside from what BMW is using. If this occurs, you have to get in touch with the salesman and let him assist you in making a claim. This is where a complicated situation may arise. Many customers have experienced this kind of stuff and they were actually shuttled from one person to another. The results were not satisfactory in this kind of situation.

There are basically two types of claims referred to when you hear the word claim. The first type of claim is the claim for benefits for PPI. In case you miss you monthly car payment due to valid reasons, the insurance is supposed to pay at this time. In actual experience this may not be so. Another type of claim, is claiming for refund for mis sold PPI. Whatever it is you first to BMW Finance PPI.