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Savills flags up dangers of MIG

Independent mortgage broker Savills Private Finance is warning would-be borrowers to be wary of lenders charging punitive Mortgage Indemnity Guarantee.

While most lenders only charge MIG on loans above 90% LTV if at all, some, including Capital Homes Loans, Amber Home Loans and Lambeth Building Society, charge MIG on LTVs of 75%.

Mark Harris, director of SPF, says: “MIG is an unnecessary evil in this day and age, where defaults on loans are significantly lower than they were when MIG was first introduced. It is usually first-time buyers who pay for MIG, as they often can only raise a small deposit. We would recommend would-be borrowers seek specialist advice to avoid paying MIG unnecessarily.

“What is sometimes ignored, or even not understood, is the fact that a market leading headline rate with a MIG may be less competitively priced than a product with a higher headline rate without a MIG.”


First year success for Genesis Approved

Genesis Approved, the mortgage club of Genesis Home Loans, has reported a successful first year of operation. Frank Thurlby, head of club operations, says: “Genesis Approved has exceeded all the targets it set at the beginning of the year. Our most important objective was to grow the membership to 400, which was actually achieved in […]

Half of advisers fail MAQ exams as MCCB deadline passes

Nearly half of November&#39s candidates for the Mortgage Advice Qualification failed their exam, reveals the Chartered Insurance Institute. Of the 1,400 entrants for November, 52% achieved a pass mark to take the total numbers of qualification holders to 11,895. Some 3,480 people sat the exam in December as they raced to beat the MCCB&#39s December […]

CML sees buoyant lending ahead

The CML predicts buoyant mortgage lending in 2003 in its latest market briefing. A slowdown in the rate of house price inflation is widely expected. The CML says: “Most commentators agree that house price growth should moderate going into 2003, with forecasts ranging from 4% to 10%.” It adds: “With continuing strength in approvals we […]

Flood advice from the Association of British Insurers

With many parts of the country experiencing flood warnings, the Association of British Insurers is reminding policyholders not to get bogged down. The ABI advises homeowners to keep up-to-date with the flood situation, through local radio and the Environment Agency&#39s Floodline (0845 988 1188 ). And it says those worried about flood risks should keep […]


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