What is a Mortgage Indemnity Guarantee?
A mortgage indemnity guarantee (Mig) is an insurance policy that borrowers have to take out if they borrow a large percentage of a property’s value. Typically, this is for loans over 90%, but some lenders do charge Migs on smaller loans.A Mig pays the bank or building society if the borrower is forced to sell his or her home. The policy doesn’t protect the borrower from debt. In fact, the Mig insurer can still sue the borrower for any losses. This has made Migs unpopular, and some lenders have now scrapped them.
