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Tonester

Mortgage Indemnity Guarantee

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When getting a mortgage one of the many fees providers try to trick you with is Mortgage Indemnity Guarantee (MIG). When I got a mortgage in 2003 I didn't have to pay it but anyone getting 95%+ mortgage typically had to pay some extra for this. It's basically insurance for the lender if you go bankrupt and there's negative equity on the house. See http://www.home.co.uk/guides/mortgage_glossary.htm?mig for a fuller explanation.

Now, does this mean that banks are not going to have to be so concerned about their losses, or was this just another fancy sting of a charge and they didn't actually get any useful insurance out of it?

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When getting a mortgage one of the many fees providers try to trick you with is Mortgage Indemnity Guarantee (MIG). When I got a mortgage in 2003 I didn't have to pay it but anyone getting 95%+ mortgage typically had to pay some extra for this. It's basically insurance for the lender if you go bankrupt and there's negative equity on the house. See http://www.home.co.uk/guides/mortgage_glossary.htm?mig for a fuller explanation.

Now, does this mean that banks are not going to have to be so concerned about their losses, or was this just another fancy sting of a charge and they didn't actually get any useful insurance out of it?

Basically the insurer is accepting your "bet" that you won't go bust.

Strangely, if you don't, then you haven't actually "won" anything!

I bet the odds on these are changing!

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I'd be willing to bet that the insurance is void unless everything possible is done to help the "homeowner" stay in the property.

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I have heard also that in the event of a payout,the insurer comes after you for its losses

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Does anyone know if mortgage indemnity policies will pay out if the borrower resorts to jingle-mail?

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  • 295 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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