Mortgage Indemnity Guarantees (MIG)

A Mortgage Indemnity Guarantee, also known as a Mortgage Indemnity Premium or High Lending Fee. It is a form of insurance that guarantees to the lender that if your property has to be sold to repay your mortgage and the proceeds of the sale are insufficient to repay the outstanding mortgage, then the Mortgage Indemnity Guarantee will pay the difference. It is important for you to realise that this insurance is there to protect the mortgage lender and not you! If your home is sold and leaves a shortfall for paying off your mortgage, you are still liable to repay the shortfall.

Many mortgage lenders will require you to pay a MIG if you borrowing more than 75% of the property's value. If you are borrowing more than 90% you will almost certainly have no choice but to pay a MIG fee.

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