Mortgage Indemnity Insurance

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.


Q: Is mortgage indemnity insurance the same as PPI?

A: No. Unlike PPI, this type of insurance is there to cover the lender, not the customer, if you fail to make payments. As such, it’s not something you are likely to be due a refund for being sold.

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