Definitions for "Additional Security Fee"
This is sometimes required when the mortgage exceeds a certain percentage of the value of the property (usually 75%). It takes the form of an up-front, one off fee paid to the lender to protect them against the borrower defaulting on the loan. Occasionally the lender may require a parent to be a guarantor or for other securities (such as other property or shares) to be made. This form of additional security is normally an Indemnity Guarantee Premium or Mortgage Indemnity Premium.
This is required when the mortgage exceeds a certain percentage of the value of the property (usually 75%). The form of additional security used is normally a Mortgage Indemnity Policy. Occasionally the lender may require a parent to be a guarantor or for other security such as shares or insurance policies to be pledged.
This is sometimes called a “mortgage indemnity guarantee policy” and is paid to take out an insurance policy, which will reimburse the mortgage lender if the mortgage borrower defaults on their payments for any reason. The mortgage lender normally starts the insurance policy at the same time the mortgage is agreed but the mortgage borrower has to pay the premium.
Keywords:  lending, higher, charge, see
See Higher Lending Charge.