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stevie_nottm

Hlc's / Mig's...really The Problem Its Made Out To Be?

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Have always considered paying a MIG (or HLC as its now politely renamed) to be the biggest

rip off in the mortgage marketplace, but having pondered the issue today at length, I wonder

if the problem is so bad after all...

Assuming the value (around £1500 or so) is added to your mortgage....

If you stuck with that deal for the full 25 year term, its cost to you would be nearer £2800...

but surely, the thing to do it, when you have managed to pay say 10% off, or drop below

the magic figure of 90% where it is applied, surely all you do is switch mortgages and the

fee will disappear as you're now borrowing a reduced amount?

Besides, your house by then will have risen in value (one hopes) and the problem is even

less of an issue as you'd be borrowing even less proportionally as a percentage of LTV?

Is my thinking right??

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No.

When the MIG is added on to the mortgage amount it effectively wipes out a bit of the capital you put in.

Unless your mortgage is for 100% of the house price, in which case you are in instant negative equity by the amount of the MIG.

If you move or surrender the mortgage then the MIG charge is still in there... it just adds to what you eventually have to pay back.... you can only save on the interest on the MIG by repaying early (the same as the rest of the money you borrowed).

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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