Higher Lending Charge
No one likes what some lenders call a Mortgage Higher lending charge (MIG), others call it a Mortgage Indemnity Premium (MIP) and some call "Mortgage Risk".
In essence, it's an insurance policy that you pay for, but the lender claims on. It provides no protection for you. In general terms a MIG is charged if you borrow more than 75% of the value of the property, some lenders raise this to a higher amount - nowadays typically 90%, some don't even have a MIG.
This will protect the lender, but not you, in the event that you default on the loan and that when the property is sold there is not enough money to repay the debt. IT IS NOT A GET OUT OF DEBT FREE CARD. The lender will be paid by the insurer but the insurer may pursue you for the money, even though you have paid the premium initially!
How much does it cost?
For any particular case one lender might charge nothing, while another would charge hundreds, even thousands, of pounds. We will include this in our selection criteria for your mortgage and find the mortgage that best suits your requirements.