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Mortgage indemnity |
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Mortgage indemnityA mortgage indemnity allows a mortgage lender to recover the costs incurred from a repossession by pursuing the former owner for the difference between a) what the property was sold for and b) what the former owner still owes under the mortgage.In effect, if you are unable to pay your mortgage, and your property is repossessed and sold, the lender can still chase you for a shortfall if the amount raised by the sale doesn't cover your debt.Some mortgage companies have insisted that borrowers take out an insurance policy to cover the potential liability - know as a mortgage indemnity guarantee. MIGs are most common where the deposit being put down by the mortgagor is less than 10% of the borrowed amount. Typically a MIG will add £1,600 to the cost of a £100,000 mortgage.MIGs have come in for a lot of bad publicity, and are not as common now as they used to be. Some lenders have abandoned them altogether.Similar MatchesDouble indemnityDouble indemnityA term normally associated with accident insurance. Under certain conditions, for example a road accident, a policy will pay twice the normal sum to the insured. IndemnityIndemnityApplies to insurance policies and means the insurer will basically make sure you are no better or worse off in the event of a claim, taking into account wear and tear. Indemnity Guarantee PremiumIndemnity Guarantee PremiumAdditional one-off fee paid to the lender to protect them against the borrower defaulting. Independent Financial Advisor In theory, these intermediaries should look at the entire financial market before making a selection and offer unbiased advice and access to all suitable financial products. they sometimes still have access to special deals not on offer elsewhere because they may subscribe to a mortgage panel along with other advisers and brokers. Together they convince lenders to provide special packages in return for their continued custom. The only trouble is that they have to deliver a certain level of business over a year to remain on the panel, so they may favour some products over others. IndemnityIndemnityAn agreement in which one person is answerable for compensating the losses of another. Indemnities are common features of many commercial contracts where one party is buying goods or a service off another, and wants to be sure that if it will be compensated if the seller has misled it about something.For example, a company that buys a plot of land might require the seller to confirm in the contract that it knows of no environmental liability relating to the land, and will also require an indemnity clause in the contact obliging the seller to make good any losses if it turns out that the land does have some environmental liability.Of course, an indemnity in a contact is only worth something is the person or company giving it has the money to make good the losses. Bond of IndemnityBond of IndemnityAn insurance policy that indemnifies the corporation, the shareholder and the Transfer Agent against any and all claims arising from the ../../finance-glossary/ment by the Transfer Agent of certificates lost or stolen. Further Suggestionsindemnity insuranceindemnity commission MIG Mortgage Indemnity Guarantee |
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