The Cost of Loans. Page 2

Take a look at the following. The figures show the

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true costs quoted by ( cheap mortgages ) each of the lenders for PPI to protect a 3-year loan of £3,000 *

Smile Loan £566.53
Ryanair Personal Loan £486.72
Virgin Personal Loan £486.72
Moneyback bank Personal Loan £417.96
Nationwide Personal Loan £325.44
Northern Rock Personal Loan £228.24

· We've calculated these costs by subtracting the full cost quoted for the loan without PPI from the full cost quoted for the same loan but with PPI. Figures ( car insurance cover ) provided by Moneysupermarket.

The first point you'll notice is that the most expensive on this list is almost 150% more expensive than the cheapest - not a lot to Smile about! So is the PPI quoted by Northern Rock, a bargain? We decide to check it out.

We got an independent PPI quote from British Insurance Ltd for a sum to cover ( mortgages ) the typical monthly loan repayment of £92 per month. The monthly cost they quoted was just £3.63 per month - equivalent to £130.38 over the full 3-year term of the loan we're comparing. This was a full £97.86 cheaper than Northern Rock.

So even Northern Rock, the cheapest of the 6 we investigated, was ( life insurance policies ) ripping us off!

The moral of this story - always buy your Payment Protection Insurance independently and never from your loan provider! And how can you find a really cheap PPI quote from British Insurance? By clicking here of course !

Your home may be repossessed if you do not keep up your repayments on a mortgage or any debt secured on it.
Loans may be secured on your home or other property. Think carefully before securing other debts against your home.