Mortgage Security Fees

fedupbeingbroke

Looking Back Some Old Paperwork I Found My Original Paperwork From The Halifax For My First Mortgage And From Northern Rock For My Second. On Both I Have Been Chrged Around £900 Each For Mortgage Security. It States In Both Paperwork That They Would Only Offer Me £........ (which Amounted To 75% Of The Mortgage I Needed ), However They Both Offered To Arrange The Full Amount I Required (95%) And Charged Me £899 For Mortgage Security........
What Is This Mortgage Security ?
We Dont Even Remember Them Telling Us About It, We Just Asked Us For A 95% Mortgage And They Said Yes....only Just Noticed These Details In The Small Print....i Dont Know If It Makes Any Difference But We Had Income Replacement Insurance Throughout Both Policies.....

Perspective

Mortgage Security is, I believe, another term for a MIG. Mortgage Indemnity Guarantee. This is an insurance policy that covers the lender for any losses should the house be repossesed. It usually covers the lender from 75% LTV and up. Nearly all lenders take out this policy with an insurance company on levels above 80% however there are a lot of lenders that now don't charge the client for the policy. Simon

I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.