Has anybody attempted to reclaim MIG charges

[sidev93]

MIG (Mortgage Indemnity Guarantee) or LTV charges have been charged for a number of years by mortgage lenders and have been the subject of much debate.

 

This is because they provide no benefit to the borrower - the mortgage lender merely uses the money to purchase an insurance policy should the borrower default.

 

It would be interesting to see if anyone has attempted to reclaim these unfair charges. I was charged £850 by The Cheshire Building Society back in 1997 and am considering writing to them.

[GraemeC]

In short, I suspect you should be able to reclaim these

 

Per Zootscoot's reply in this thread

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/25072-very-interesting-article-ercs.html#post196109

 

I think this is the answer you are looking for....

 

It is unacceptable to place their commercial risk on to consumers. Huge institutions are more than capable of absorbing this commercial risk. It is common for businesses to take commercial risks in trying to attract customers. You do not go in to Tescos and see buy one get one free offers subject to terms that you might be required to pay a fee later if you never buy their products in the future in order for you to cover their commercial risks. Also this is where Unfair Contract Terms Act s.4 comes in - a business can not impose a term that requires a consumer to indemnify their loss. This is subject to the requirements of reasonableness in s.11

[angewes]

Having recently discovered I can claim a portion of my previous Mortgage Exit Administration Fee charges I thought I'd look at my old mortgages other charges. I discovered that, when I was younger and far less concsientious than I am now, I had paid a 2,000 pound MGI/MIG.

 

Firstly I am dissapointed with my old self for agreeing to it and secondly I am furious that I added it to the mortgage and did not just pay it.

 

I wondered if you'd pressed the issue and got anywhere??