Patricia Pearl - Small Claims Procedure - A Practical Guide


An excellent guide for the layperson in how to use the County Court - a must if you are intending to start a claim.

£19.99 + £1.50 (P&P)

+ Reply to Thread
Results 1 to 4 of 4
  1. #1
    Classic Account Holder
    Help the CAG!!
    Make a contribution
    maybelline Novitiate maybelline Novitiate

    Follow Real_CAG on Twitter

    Cagger since
    Jun 2006
    I am in
    below the poverty line!
    Posts
    2,278

    Default Mortgage Indemnity Guarantee

    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)

    Similar Threads:

  2. #2
    Platinum Account Holder
    Help the CAG!!
    Make a donation
    gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative gizmo111 Authoritative

    Follow Real_CAG on Twitter

    Cagger since
    Jun 2006
    Posts
    9,917

    Default Re: Mortgage Indemnity Guarantee

    Quote Originally Posted by maybelline
    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)
    Do you mean that you you borrowed 40K on a house valued at 100K and were charged 1K MIG? It will all depend on the lenders criteria at the time. A secured loan is different to a mortgageicon but the usual is MIG around 75%.

    The MIG only comes into effect after repossesion or sale if the mortgageicon co loses out, accepting lower monthly payments wil lnot trigger the ins co to pay out on the MIG.

    Hope this helps


    Consumer Health Forums - where you can discuss any health or relationship matters.
    Follows
    0
    Following
    0

  3. #3
    Classic Account Holder
    Help the CAG!!
    Make a contribution
    maybelline Novitiate maybelline Novitiate

    Follow Real_CAG on Twitter

    Cagger since
    Jun 2006
    I am in
    below the poverty line!
    Posts
    2,278

    Default Re: Mortgage Indemnity Guarantee

    Hi, borrowed 7K secured against home, paid MIG of 1K then paid MIG twice again when increased borrowing to 9K, but owe 13K including interesticon etc.

    I read somewhere that 8% is usual, 8% of the amount borrowed? basically I couldnt see any risk of them not getting all their money if the house was sold since there was enough to cover the morgage and the secured loan.

    Follows
    0
    Following
    0

  4. #4
    Classic Account Holder
    Help the CAG!!
    Make a contribution
    maybelline Novitiate maybelline Novitiate

    Follow Real_CAG on Twitter

    Cagger since
    Jun 2006
    I am in
    below the poverty line!
    Posts
    2,278

    Default Re: Mortgage Indemnity Guarantee

    still do not understand this MIG or HLC situation? how can you pay MIG on such a small sum compared to equity, as you say it is to protect them but surely not nec if borrow 10% of equity value.

    'rise like lions after slumber, in unvanquishable number, shake your chains to the earth like dew, which in sleep had fall'n on you, ye are many, they are few.' Percy Byshse Shelly 1819
    Follows
    0
    Following
    0


Viewing CAG on a small screen? Switch to the mobile version of the site

Reclaim the Right Ltd. - reg.05783665 in the UK reg. office:- 923 Finchley Road London NW11 7PE