Mortgage Indemnity Guarantee

Brizy_2

Does anyone have any experience of contesting a Mortgage Indemnity Guarantee? My house got repossessed around 15 years ago. I was told I had to buy a MIG when I took out the 100% mortgage. When I couldn't keep up repayments my house was repossessed and then sold, I guess the bank got back the balance through the MIG as there was a loss.
They later sold the debt to a 'solicitors' who I paid £50 a month to ever since. At no time can anyone tell me what the house sold for or how they calculated the amount of the debt. Surely as I paid for the insurage (MIG - c.£1,000) the debt is gone?

maninthestreet

The insurance company that paid out on the MIG (or HLC, as they are now called) can pursue you for the money they have paid to the lender in respect of any difference between what the house sold for and the amount outstanding on the mortgage. Even though you paid the insurance premium, the money paid out by the policy is paid to the lender and you are responsible for paying this money back to the insurance company. It might be that this £50 per month you have been paying is going to the MIG insurance company,

Brizy_2

Thanks maninthe street.