A question about : MIG mortgage indemnity guarantee
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 Ј15,000 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 Ј24,000! 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 Ј20 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
Best answers:
- 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.
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