An extra charge made by lenders on loans that are more than 90% of the value of a property. See also mortgage indemnity insurance. The lender will require additional security on the amount in excess of this threshold in the form of an insurance policy (a higher percentage lending fee). This can also be applied in cases where a borrower does not have the necessary deposit.
The policy is used to protect the lender only and is used to cover the lender in the situation, where the property is repossessed and the loan plus any unpaid interest exceeds the sale value of the property. You will then owe the insurance company any payment claimed by the lender.
The lender will arrange the insurance and the premium will be paid by you, in some cases it can be added to the loan.
Use the links below to locate the term you are looking for. If you can't locate it, please get in touch.