MIG mortgage indemnity guarantee

adelebw2469

Hi
Has anyone heard of MIG - mortgage indemnity guarantee?

We took out a 100% mortgage in 1991, the estate agent who arranged the mortgage told us we needed to have a MIG, they said it was an insurance policy to protect us incase the house was ever repossessed. In 2000 the house was repossessed. We owed 2,000
The house took 18 months to sell. We heard nothing from july 2000 until july 2010 - 10 yrs. the house was sold for £15,000 less than we paid for it, then they added 18 months of mortgage payments, solicitors, estate agents, bailiff fees plus money for changing the locks grand total £24,000! I was distraught. I remembered the MIG, only to find out it was an insurance protects the lender. Totally misled. Anyway they finally took us to court in 2012 and we now pay £20 a month. We've never had a morgage since, weve rented from the same landlord. What i want to ask is, i feel we were mis sold the MIG, although it was required by the lender for the mortgage to be approved, the estate agent was at fault. Do i have to put it down to experience or do i have anything to complain about

PasturesNew

As you were told, the MIG was a requirement by many lenders at the time to get a mortgage over 80%. Most had it as a requirement at the time.

As you found out, the insurance policy wasn't to pay off your shortfall if you were repossessed, but to pay the lender the shortfall, with them still having the ability to come after you for all that money up to X years later.

I've not seen anybody claiming they were missold an MIG, so it's unlikely there's any case to answer.

dunstonh

Has anyone heard of MIG - mortgage indemnity guarantee?

Yes. it was very common historically. In the property price boom years, it was phased out though.

We took out a 100% mortgage in 1991, the estate agent who arranged the mortgage told us we needed to have a MIG, they said it was an insurance policy to protect us incase the house was ever repossessed.

MIG was typically in place for loan to valuations above 75%. Although lenders would have different levels but that is the sort of ballpark.

I remembered the MIG, only to find out it was an insurance protects the lender

Correct.

Totally misled.

Cant see how.

What i want to ask is, i feel we were mis sold the MIG, although it was required by the lender for the mortgage to be approved, the estate agent was at fault.

You were not mis-sold. You had no choice. It was a condition of borrowing. It would have been documented at the time. The fact that 23 years later you cannot remember bits of it is not unsurprising but there is no mis-sale here.

roonaldo

adelebw2469 wrote: »

i feel we were mis sold the MIG

MIGS aren't mis-sold. It's for the benefit of the lender so they won't mis-sell it to themselves!

magpiecottage

roonaldo wrote: »

MIGS aren't mis-sold. It's for the benefit of the lender so they won't mis-sell it to themselves!

Absolutely.

The lender was doing the OP a favour by agreeing to lend over and above their normal limit but this meant incurring an additional cost of insuring themselves in case it all went wrong.

It is a bit like when my brother did me a favour and let me borrow his car. I paid the additional insurance premium but if I had needed to claim I would have expected to meet the excess and any additional premium he had to pay when he renewed the policy.

PolarPlateau

Full-time, paid-up, Company shill.

societys_child

PolarPlateau wrote: »

Full-time, paid-up, Company shill.

:huh: Have you wondered in here by mistake?

Nearlyold

Perhaps he was looking for the Get out of Debt Free site?

dunstonh

societys_child wrote: »

:huh: Have you wondered in here by mistake?

Appears to be posting the same thing on multiple historic threads.

As you say, he has wandered in here by mistake. The pub is down the road.

magpiecottage

dunstonh wrote: »

The pub is down the road.

I think, perhaps, he has already spent rather longer in there than he should have.

societys_child

:huh: Have you wondered in here by mistake?

dunstonh wrote: »

As you say, he has wandered in here by mistake. The pub is down the road.

It's what I almost said -
wandered . . . lol, that's the word I was looking for:o