See Indemnity Insurance.

Mortgage Indemnity Guarantee. This is insurance that covers the lender in case your property is repossessed and the lender cannot get back their money. Although this insurance protects the lender, you have to foot the bill. Some lenders will add the MIG on completion of the mortgage, whilst others will deduct the relevant amount at completion. This usually applies to high percentage mortgages of over 75% loan to value.

An amount payable when a loan to property value exceeds the lender's maximum allowable. Amount payable and repayment terms of a M.I.G. vary according to each lender's mortgage arrangements.

A fee to cover the lender if the loan-to-value (LTV) is above a certain level and will vary with mortgage provider. If the amount you are borrowing is more than 75% of the value of the house, you can expect to pay this fee. The fee is meant to protect the lender if it has to take possession of the property, and the value of the property has fallen below the loan amount. Sometimes called Mortgage Guarantee Insurance.

One payment made when a mortgage is taken out. This is insurance set up for the mortgage lender. Usually only used when a deposit of less than 10 percent is made.

This is an insurance premium that you have to pay for some mortgages, usually when the Loan To Value is above a certain figure. It protects the lender to some extent if you default on the mortgage. It is important to understand that although you have to pay the premium, the lender benefits from any payout, and that if the payout doesn't cover their costs they may seek further money from you if you have defaulted. With many mortgages you can add MIG to the loan, unless this takes your Loan To Value to too high a figure. The insurer may pursue the defaulter for reimbursement of any monies that have been paid out in respect of lenders claim.

(MIG) A single premium indemnity policy paid for by the borrower which insures the lender against losses in excess of 75% (usually) of the loan-to-value sum.

An insurance which is designed to protect a mortgage lender against the risk of you defaulting or not being able to repay the mortgage. The policy is usually imposed upon by the lender at the start of the loan and the premium payable is determined by the level of perceived risk to the home lender of you defaulting on the loan.

Insurance designed to protect a mortgage lender against the risk of the borrower not being able to repay the loan. The injustice is that it's the borrower that pays the premium. This type of insurance is only imposed by the lender if you borrow above a certain percentage of the value of the property - typically 75 per cent or above. The greater your proportional borrowing, the bigger the insurance premium you have to pay.

An insurance policy that mortgage lenders may require buyers to pay for if there loan is above a specified amount of the purchase price.

If you borrow more than 75% of the value of your house, you may well get hit with one of these. It insures the lender against you being unable to pay and your house being repossessed. For further information see Top Ten Tips.

Also known as Loan Percentage Charge. Every lender is required to obtain Mortgage Indemnity Insurance to act as extra security for their sole benefit for higher risk lending. Some lenders may cover the cost of this insurance up to a specific percentage of the property’s valuation, such as up to 90% of loan to value. However, if the mortgage exceeds 90% of the property’s valuation, a borrower may be required to pay a one-off fee to cover the cost of this insurance, which could be added to the mortgage account. In either case you should be aware that: Such insurance does not protect you if your property is subsequently taken into possession and sold for less than the amount you owe. You remain liable to pay all sums owing, including arrears, interest and a lender’s legal fees. If a claim is paid to the lender under such insurance, the insurers have the right to recover this amount from you.

See MIG.

This is a premium charged by Lenders in order to indemnify themselves, and not the borrower, against any financial shortfall they may incur in the event of repossessing a property which must then be sold at a loss. It is applicable if the amount required is higher than a certain percentage of the property value, usually 75% loan to value; often the Lender will pay the cost of this insurance themselves between 75% and 90% loan to value. The charge may either be added to the loan od deducted from the advance on completion.

a bit of a con this one, but if you borrow more than 75 per cent on your mortgage or re-mortgage, your lender will likely ask you to takeout a mortgage indemnity guarantee which states that if you default in payment, the insurance company will repay your debt for you. Keep-in-mind, however, that the insurance company is hardly likely to make any payment until all your assets are exhausted