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MIG

from Bev (Bev100@genie.co.uk)
I'm sorry to sound thick but can someone explain to me what the mortgage indemnity guarantee is actually for.

I assume that it is a type of insurance that a borrower pays for the lender. If the property gets repossessed the lender can claim on the MIG. The bit that confuses me is that the insurer can then claim the money back from the borrower that they paid out to the lender.

I must be getting it wrong somewhere because if you were to claim on car insuarnce the insurance company that you had paid your premiums to wouldn't be chasing you for the money they'd paid out.

They seem pointless and like I can't get my head round my you would pay an insurer X pounds for them to then claim any payout back off you.

If it isn't obvious - no my lender did not explain to me what the MIG I've paid for is for. I only know I have one because it showed up on the SARN I served.

(posted 8186 days ago)

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