I have tried to understand this recently having looked it up. I understand it protects the lender and is a kind of insurance in case of default so that they get their money back.
My question is, taking out a secured loan against a property worth around a hundred thousand at the time, with 60 or 70K equity should it attract a MIG fee of £1000? and what happens if they enter a default but make an arrangement to accept reduced payment, are they using the MIG to cover the shortfall or what?
(sorry I am so ignorant of all this stuff but am certainly on a learning curve now)