MIG fees

roonaldo

tifo wrote: »

I didn't know Abbey charged MIG (Mortgage Indemnity Guarantee). I had a 90% LTV mortgage from the bank and I did not pay any MIG fee. I didn't pay any fees as they refunded my survey fee and the developer paid for the searches.

I know many sub prime lenders charged this.

Yes, they definetley did, it may have been for LTV's 90%+.

tifo

roonaldo wrote: »

Yes, they definetley did, it may have been for LTV's 90%+.

They definitely didn't ....

I know what I borrowed and what I paid to do it ....

HughJarse_2

victoria14 wrote: »

I paid £2000 mig fee due to a 90%LTV on my mortgage 4 years ago,

MIG or HLTV fees disappeared a few years ago. I seem to remember that people were starting to reclaim bank charges and citing Unfair Terms in Consumer Contracts Regulations around the very same time.

That is just a coincedence of course, the fees disappearing when the issue of fairness was being brought before the Courts.;)

roonaldo

HughJarse wrote: »

MIG or HLTV fees disappeared a few years ago. I seem to remember that people were starting to reclaim bank charges and citing Unfair Terms in Consumer Contracts Regulations around the very same time.

That is just a coincedence of course, the fees disappearing when the issue of fairness was being brought before the Courts.;)

they disappeared as banks restricted their lending and dont offer high LTV's like they used to and a marketing decison to remain competitive.

MIG fee's have not been brought before courts as a unfair fee. you havent said anything factually correct in this post.

Mrs_Jojo

They are a bit like a booking fee really (i.e. you pay/used to pay a booking fee for a fixed rate to 'book' the funds) in as much as you were told about them up front and chose to take the deal on the basis you would pay them. I think the bank you argue that you could have taken another deal (although you would have needed a bigger deposit) or you could have gone somewhere else.

I used to work in a mortgage call centre a decade ago and you would occasionally get people calling to say their fixed rate was 8% and not we were offering 3% mortgages and it wasn't fair and what would we do..... unfortunately the only answer was that they had signed up for the rate, and if rates were now 10% they would be laughing!

I think you would stuggle to get anyone and especially a court to think MIG was unfair.... what if the government decided to reclaim MIRAS - there would be rebellion, and it is sort of a similar issue!

dunstonh

The removal of MIGs had more to do with the timing of the credit boom and the opening up of lending from new companies (and some established) who started to drop the MIG. It was market forces that dropped it.

There was an article last year that suggested that MIGs may come back again as lenders look to protect themselves more on high loan to value mortgages.

johnfthetraveller

Interesting thread. Does anyone have a view on unfairness due to the mortgage company expecting the customer to buy their own (probably expensive) MIG, rather than shop around for insurance?

dunstonh

Does anyone have a view on unfairness due to the mortgage company expecting the customer to buy their own (probably expensive) MIG, rather than shop around for insurance?

You couldnt buy it elsewhere.

tifo

dunstonh wrote: »

You couldnt buy it elsewhere.

That makes it unfair because the customer is restricted in their choice.

dunstonh

tifo wrote: »

That makes it unfair because the customer is restricted in their choice.

It does not make it unfair. It is not a retail insurance and not subject to retail laws and regs. However, if you dont like it then waste more money on going to court on it.