Mortgage Guarantee Insurancehypothekengarantieversicherung
A MIG is usually needed when the debtor takes out a mortgage with a relatively high Loan to Value (LTV) relationship. The majority of mortgage creditors charge a higher credit fee, sometimes known as the MIG, when the LTV is above 75%. Whilst it is important to note that the costs of the mortgage default guarantee are borne by the debtor, MIG is an insurance contract in favor of the creditor.
This said, without a MIG, lenders would not be providing Mortgages at such high level LGTs, so most will be willing to foot this additional bill and get a bigger mortgage with a smaller deposition requirement consequently. As a rule, the fee for a MIG is charged at 6 - 8% of the amount of the LTV 75% over.
Please call a mortgage advisor on 01628 507477 for further information.
This page how it works
We are a editorial website and strive to offer the best MoneySaving instructions, hints, tools as well as technologies, but cannot guarantee that they are impeccable. Please be aware that you use the information at your own risks and that we cannot be held responsible if anything goes awry. The information is not intended to be investment advisory, always conduct your own research to make sure it is appropriate for your particular situation and keep in mind that we are focused on pricing rather than servicing.
Please be aware that although we always endeavour to provide you with precise information at the time of publishing, prices and conditions of our offers and services are subject to change without notice, so please review this first. As a general guideline we do not examine the financial soundness of the aforementioned businesses (how likely it is that they will go bankrupt), but there is a danger that any business can fight, and it is seldom published until it is too late to do so (see the Guideline for Protective Hints in Section 75).