We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Mortgage Guarantee Insurance to return?

mystic_trev
mystic_trev Posts: 5,434 Forumite
Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
in Debate House Prices & the Economy
Forgotton all about this 'old chesnut' used to be common many years ago. Fell out of favour when high LTV'S came on the scene and was no longer required.Looks like it might be due a return, although only for people with A1 Credit and meeting a strict criterea.Premiums could be high, particulary in a falling market.



http://uk.news.yahoo.com/cbi-calls-measures-help-home-buyers-191734093.html

Comments

  • crash123
    crash123 Posts: 399 Forumite
    mystic_trev wrote: »
    Forgotton all about this 'old chesnut' used to be common many years ago. Fell out of favour when high LTV'S came on the scene and was no longer required.Looks like it might be due a return, although only for people with A1 Credit and meeting a strict criterea.Premiums could be high, particulary in a falling market.



    http://uk.news.yahoo.com/cbi-calls-measures-help-home-buyers-191734093.html

    We paid this in 1993. It cost £900 then.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I paid this on my last house, cost me £1000.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mystic_trev wrote: »
    Forgotton all about this 'old chesnut' used to be common many years ago. Fell out of favour when high LTV'S came on the scene and was no longer required.

    The purpose of MIG's was to insure advances over 75%. Used to cost an upfront premium of 5% of the excess advance and was added to the mortgage in most instances. So incurred interest charges on top.

    So over the term of the mortgage. Bearing the average mortgage holder moves in under every 7 seven years. A nice earner for the lenders.
  • dunstonh
    dunstonh Posts: 120,207 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    There has been talk about this coming back since the credit crunch began. However, that is all it has been.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    dunstonh wrote: »
    There has been talk about this coming back since the credit crunch began. However, that is all it has been.

    Would be a way of dropping high product arrangement fees from view.
  • Pimperne1
    Pimperne1 Posts: 2,177 Forumite
    I am thinking of becoming a Mortgage Advisor so I think this could be a nice little earner for me.
  • daveyjp
    daveyjp Posts: 13,745 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I remember when we bought our house the adviser messed up big time. Attractive rate on loans up to 95%, paperwork duly done (which as you know takes ages) he then dropped the bombshell of a few hundred quid to pay for the insurance, he smoothed it by saying it could be added to the loan - yes it could, but we would be over 95% LTV and therefore not eligible for the mortgage deal!

    I told him where to go and I found a mortgage myself with a decent intro offer and no insurance issues.
  • dunstonh
    dunstonh Posts: 120,207 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I am thinking of becoming a Mortgage Advisor so I think this could be a nice little earner for me.

    How would a mortgage adviser earn from it? They didnt when they used to exist in the 90s. So, there is no reason to think they would now.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Pimperne1
    Pimperne1 Posts: 2,177 Forumite
    dunstonh wrote: »
    How would a mortgage adviser earn from it? They didnt when they used to exist in the 90s. So, there is no reason to think they would now.

    Apart from it may not be the same as the ones that existed in the 90s? But yes, as an IFA, you certainly have a better insight than I.
  • hallowitch
    hallowitch Posts: 1,286 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I paid £800 in 1990 but paid it up front because i didnt want it added to my morgage
    I am not an expert I am self taught i have no legal training any information I post is based on my own personal experience and information gained from other web sites


    If you are in any doubt please seek legal/expert advice help
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture