understanding financial jargon
Mortgage Indemnity Guarantee ( MIG )
A single premium insurance policy, paid for by the borrower prior to completion of the mortgage is called a Mortgage Indemnity Guarantee (or MIG, also known as a higher lending charge). It insures the lender for losses in excess of (usually) 75% of the loan-to-value sum. The borrower still remains liable for any amount claimed, so the insurer can recover the sum paid out under its power of subrogation.
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
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