What is Mortgage Indemnity?

Be VERY aware of this extra charge that may be levied on you loan.

MIG meaning Mortgage Indemnity Guarantee, sometimes referred to as High Loan Premium or Maximum Advance fee. This is an Insurance that the Lender takes out in the event that you wish to borrow more than 75% of the value of your property or of a property you intend to purchase. This is due to the Lender taking the view that they are involved in extra risk. (Although MOST, Lenders will not charge you for this, if the loan is below 90% of the properties value).

The cost of this insurance is paid by you to protect the Lender's interest in your property above 75% of the value in the event that due to a change in your circumstances you become unable to repay the loan.

HOWEVER, even though you have paid the insurance premium for the Lender, if a situation arises that the Lender has to repossess the property, and has to claim on this insurance to recover any shortfall after the sale of the property. The Insurance company that pay the Lender the shortfall has the right to sue you, for the amount they paid to the Lender

This Premium is usually added to the mortgage and should be made very apparent, so be aware as it can amount to a significant amount of money.

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