What is...

Mortgage Indemnity Insurance

Mortgage Indemnity Insurance is an insurance premium sometimes required by a mortgage lender if you are borrowing more than a certain percentage of the value of your home – usually 75%. The idea is that if the value of the property falls beneath 75% of the original valuation for any reason the insurance will pay out. In the unfortunate event that that happens, the insurance company will usually pursue you for the amount they paid the lender, even though you paid the premium yourself.

Shop around – some lenders do not require Mortgage Indemnity Insurance, though MII may be compulsory on some high LTV mortgages.

Will a Mortgage Indemnity show on my Credit Report?

Mortgage Indemnity is an insurance product, not a credit facility and so won’t be listed on your Credit Report.

If you were to fall behind with mortgage payments however, the record of those would be listed and visible to other lenders searching your Credit Report.

Should you wish to check your Credit Report, checkmyfile allows you to see everything being reported by all 4 Credit Reference Agencies, together in the same format. It’s free for 30 days, then £14.99 a month until cancelled. You can cancel at any time online, without fuss.

Is Mortgage Indemnity Insurance the same as PPI?

No. Unlike PPI, this type of insurance is there to protect the lender, not the customer, should the borrower fail to make payments. As such, it’s not something that is likely to be due a refund for being mis-sold.

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