SlideShare une entreprise Scribd logo
1  sur  1
Télécharger pour lire hors ligne
What is a Mortgage Insurance Guarantee Premium?
Question
We are buying a house for £145,000, but do not     The MIGP provides no protection for you.
have a deposit. We have been told by our           Indeed, if the insurance company has to pay
bank that they will provide a 100% mortgage,       your lender, they have the right to take legal
but we have to pay a mortgage insurance            action against you to recover their loss.
guarantee premium (MIGP) of £4,350, which
can be added to our loan. This seems               Unfortunately, like most insurance, you receive
expensive. What is the money for, do we need       no refund if your lender does not claim on the
to pay it and what does it cover us for?           policy. The premium can either be added to
                                                   the loan or paid in cash (most people add this
                                                   to the mortgage - if you had the cash in the first
Answer                                             place, you wouldn't be looking for a 100%
The market for 100% mortgages is limited. There    loan).
are a lot fewer lenders for you to choose from.
Lenders look for a degree of comfort. They feel    Adding it to your mortgage does mean that
that there is more chance of a client not          you will also pay interest on the amount over
keeping up loan repayments when they have          the term of the loan. The interest payment on
either no deposit or a small deposit.              your MIGP will cost you an additional £260 in
                                                   the first year (based
        A MIGP is a single-premium                 on current interest
           insurance policy that                   rates). The only way to
            protects the lender.                   escape the fee is
                                                   either to obtain a
                                                   deposit large enough
                                                   to avoid the charge
Lenders got their fingers burned in the 1980s      (the vast majority of
when house prices fell and people lost their       lenders impose no fee
jobs and were unable to maintain their             if you have a 10%
mortgage payments. Those lenders that              deposit) or to choose      Andrew R Dawkins ACII,
provided high-percentage loans found that          one of the small              Chartered Insurer
they were losing money as the property they        handful of lenders that    (Independent Financial
owned was worth less than the mortgage             do not impose a MIGP             Consultant)
secured on it.                                     at 100% lending.

As a consequence, some lenders decided not
to lend to customers with small deposits, and             To ask a question about your
those lenders that stayed in the market for 100%        mortgage or any of your financial
loans imposed MIGPs. A MIGP is a single-                needs, call A.R.D. Consultancy on
premium insurance policy that protects the                  freephone 0800 028 4258
lender. It provides the lender with an important
safeguard - if the lender has to repossess a
home because of non-payment of the                 Brought to you by Andrew R Dawkins ACII,
mortgage, and if the property is sold by the       Chartered Insurer (Independent Financial
lender for less than the mortgage outstanding,     Consultant). For more advice on all your
the insurance company will make up the             financial matters visit A.R.D. Consultancy at
difference.                                        www.ardconsultancy.co.uk.


           A.R.D Consultancy. Suite 8, Callendar Business Park, Falkirk. FK1 1XR
                               Freephone 0800 028 4258

Contenu connexe

Plus de legal5

Medical Malpractice Attorney
Medical Malpractice AttorneyMedical Malpractice Attorney
Medical Malpractice Attorneylegal5
 
Medical Malpractice And Contract Disclosure A Study Of The
Medical Malpractice And Contract Disclosure A Study Of TheMedical Malpractice And Contract Disclosure A Study Of The
Medical Malpractice And Contract Disclosure A Study Of Thelegal5
 
Medical Malpractice
Medical MalpracticeMedical Malpractice
Medical Malpracticelegal5
 
Medical Malpractice Law In The United States Prepared For The
Medical Malpractice Law In The United States Prepared For TheMedical Malpractice Law In The United States Prepared For The
Medical Malpractice Law In The United States Prepared For Thelegal5
 
Malpractice
MalpracticeMalpractice
Malpracticelegal5
 
Medical Malpractice Law In The United States Report
Medical Malpractice Law In The United States ReportMedical Malpractice Law In The United States Report
Medical Malpractice Law In The United States Reportlegal5
 
Attorney Form Legal Power
Attorney Form Legal PowerAttorney Form Legal Power
Attorney Form Legal Powerlegal5
 
Avoiding Malpractice Conflicts Of Interest In Bankruptcy ...
Avoiding Malpractice Conflicts Of Interest In Bankruptcy ...Avoiding Malpractice Conflicts Of Interest In Bankruptcy ...
Avoiding Malpractice Conflicts Of Interest In Bankruptcy ...legal5
 
Question Summary Of Responses 1
Question Summary Of Responses 1Question Summary Of Responses 1
Question Summary Of Responses 1legal5
 
Questions And Answers On Mediation Question 1 What Is Mediation
Questions And Answers On Mediation Question 1 What Is MediationQuestions And Answers On Mediation Question 1 What Is Mediation
Questions And Answers On Mediation Question 1 What Is Mediationlegal5
 
Questions And Answers On Mediation Question What Is Mediation 1
Questions And Answers On Mediation Question What Is Mediation 1Questions And Answers On Mediation Question What Is Mediation 1
Questions And Answers On Mediation Question What Is Mediation 1legal5
 
Lega Wills
Lega WillsLega Wills
Lega Willslegal5
 
Legal Finance
Legal FinanceLegal Finance
Legal Financelegal5
 
Legal Document
Legal DocumentLegal Document
Legal Documentlegal5
 
Lega Doc
Lega DocLega Doc
Lega Doclegal5
 
Does Blair Answer The Question An Analysis Of His Performance At
Does Blair Answer The Question An Analysis Of His Performance AtDoes Blair Answer The Question An Analysis Of His Performance At
Does Blair Answer The Question An Analysis Of His Performance Atlegal5
 
If Dle Is The Answer What Is The Question
If Dle Is The Answer What Is The QuestionIf Dle Is The Answer What Is The Question
If Dle Is The Answer What Is The Questionlegal5
 
A Legal Will
A Legal WillA Legal Will
A Legal Willlegal5
 
No. Section Faq Question
No. Section Faq QuestionNo. Section Faq Question
No. Section Faq Questionlegal5
 
Podcasting Legal Guide[1]
Podcasting Legal Guide[1]Podcasting Legal Guide[1]
Podcasting Legal Guide[1]legal5
 

Plus de legal5 (20)

Medical Malpractice Attorney
Medical Malpractice AttorneyMedical Malpractice Attorney
Medical Malpractice Attorney
 
Medical Malpractice And Contract Disclosure A Study Of The
Medical Malpractice And Contract Disclosure A Study Of TheMedical Malpractice And Contract Disclosure A Study Of The
Medical Malpractice And Contract Disclosure A Study Of The
 
Medical Malpractice
Medical MalpracticeMedical Malpractice
Medical Malpractice
 
Medical Malpractice Law In The United States Prepared For The
Medical Malpractice Law In The United States Prepared For TheMedical Malpractice Law In The United States Prepared For The
Medical Malpractice Law In The United States Prepared For The
 
Malpractice
MalpracticeMalpractice
Malpractice
 
Medical Malpractice Law In The United States Report
Medical Malpractice Law In The United States ReportMedical Malpractice Law In The United States Report
Medical Malpractice Law In The United States Report
 
Attorney Form Legal Power
Attorney Form Legal PowerAttorney Form Legal Power
Attorney Form Legal Power
 
Avoiding Malpractice Conflicts Of Interest In Bankruptcy ...
Avoiding Malpractice Conflicts Of Interest In Bankruptcy ...Avoiding Malpractice Conflicts Of Interest In Bankruptcy ...
Avoiding Malpractice Conflicts Of Interest In Bankruptcy ...
 
Question Summary Of Responses 1
Question Summary Of Responses 1Question Summary Of Responses 1
Question Summary Of Responses 1
 
Questions And Answers On Mediation Question 1 What Is Mediation
Questions And Answers On Mediation Question 1 What Is MediationQuestions And Answers On Mediation Question 1 What Is Mediation
Questions And Answers On Mediation Question 1 What Is Mediation
 
Questions And Answers On Mediation Question What Is Mediation 1
Questions And Answers On Mediation Question What Is Mediation 1Questions And Answers On Mediation Question What Is Mediation 1
Questions And Answers On Mediation Question What Is Mediation 1
 
Lega Wills
Lega WillsLega Wills
Lega Wills
 
Legal Finance
Legal FinanceLegal Finance
Legal Finance
 
Legal Document
Legal DocumentLegal Document
Legal Document
 
Lega Doc
Lega DocLega Doc
Lega Doc
 
Does Blair Answer The Question An Analysis Of His Performance At
Does Blair Answer The Question An Analysis Of His Performance AtDoes Blair Answer The Question An Analysis Of His Performance At
Does Blair Answer The Question An Analysis Of His Performance At
 
If Dle Is The Answer What Is The Question
If Dle Is The Answer What Is The QuestionIf Dle Is The Answer What Is The Question
If Dle Is The Answer What Is The Question
 
A Legal Will
A Legal WillA Legal Will
A Legal Will
 
No. Section Faq Question
No. Section Faq QuestionNo. Section Faq Question
No. Section Faq Question
 
Podcasting Legal Guide[1]
Podcasting Legal Guide[1]Podcasting Legal Guide[1]
Podcasting Legal Guide[1]
 

Dernier

Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfMichael Silva
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxOffice for National Statistics
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Commonwealth
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Matthews Bantsijang
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 

Dernier (20)

Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdf
 
Effects & Policies Of Bank Consolidation
Effects & Policies Of Bank ConsolidationEffects & Policies Of Bank Consolidation
Effects & Policies Of Bank Consolidation
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 

What Is A Mortgage Insurance Guarantee Premium Question Answer

  • 1. What is a Mortgage Insurance Guarantee Premium? Question We are buying a house for £145,000, but do not The MIGP provides no protection for you. have a deposit. We have been told by our Indeed, if the insurance company has to pay bank that they will provide a 100% mortgage, your lender, they have the right to take legal but we have to pay a mortgage insurance action against you to recover their loss. guarantee premium (MIGP) of £4,350, which can be added to our loan. This seems Unfortunately, like most insurance, you receive expensive. What is the money for, do we need no refund if your lender does not claim on the to pay it and what does it cover us for? policy. The premium can either be added to the loan or paid in cash (most people add this to the mortgage - if you had the cash in the first Answer place, you wouldn't be looking for a 100% The market for 100% mortgages is limited. There loan). are a lot fewer lenders for you to choose from. Lenders look for a degree of comfort. They feel Adding it to your mortgage does mean that that there is more chance of a client not you will also pay interest on the amount over keeping up loan repayments when they have the term of the loan. The interest payment on either no deposit or a small deposit. your MIGP will cost you an additional £260 in the first year (based A MIGP is a single-premium on current interest insurance policy that rates). The only way to protects the lender. escape the fee is either to obtain a deposit large enough to avoid the charge Lenders got their fingers burned in the 1980s (the vast majority of when house prices fell and people lost their lenders impose no fee jobs and were unable to maintain their if you have a 10% mortgage payments. Those lenders that deposit) or to choose Andrew R Dawkins ACII, provided high-percentage loans found that one of the small Chartered Insurer they were losing money as the property they handful of lenders that (Independent Financial owned was worth less than the mortgage do not impose a MIGP Consultant) secured on it. at 100% lending. As a consequence, some lenders decided not to lend to customers with small deposits, and To ask a question about your those lenders that stayed in the market for 100% mortgage or any of your financial loans imposed MIGPs. A MIGP is a single- needs, call A.R.D. Consultancy on premium insurance policy that protects the freephone 0800 028 4258 lender. It provides the lender with an important safeguard - if the lender has to repossess a home because of non-payment of the Brought to you by Andrew R Dawkins ACII, mortgage, and if the property is sold by the Chartered Insurer (Independent Financial lender for less than the mortgage outstanding, Consultant). For more advice on all your the insurance company will make up the financial matters visit A.R.D. Consultancy at difference. www.ardconsultancy.co.uk. A.R.D Consultancy. Suite 8, Callendar Business Park, Falkirk. FK1 1XR Freephone 0800 028 4258