Finance Information Directory from Online Consumer Information Services

BOOKMARK THIS PAGE | HOME
OCIS Online Consumer Information Services
CONFUSED? - You WON'T BE with US!
Let . . . OCIS Financial Information HELP YOU . . . NOW!

OCIS - Online Information Directory, Loans Information, Mortgage Information, Retail Information and more!

Why Choose OCIS?Choose OCIS
Quality Information and resources! Comprehensive summary on all companies and institutions that OCIS deal with!
Simple navigation for ease of use! No pop ups!
In a hurry? You will find direct links from this portal to all of our web sites.
If it's information you are after, then click Finance Information Index for specific information as well as lots of useful FREE advice.

Mortgage Information - Mortgage Indemnity Insurance

 

Mortgage Indemnity Insurance - Mortgage Information

 

What is Mortgage Indemnity Insurance?

You pay for Mortgage Indemnity Insurance but it only protects the lender if you can't pay back the loan. It is often compulsory if the loan to value ratio of your mortgage is above 95% - which can hit first time buyers. Some mortgage lenders charge it from an 80% loan to value, other lenders don't charge it at all - although it may be hidden and you are paying for it through a higher interest rate.

If you don't keep up your mortgage payments and your house is repossessed and sold for less than the money still owed on the mortgage then the lender is insured against that loss. But the insurer may be able to claim the loss from you many years later. Mortgage lenders can chase debts up to 12 years old, unlike the standard 6 years for the rest of UK businesses. Years later, after you've sorted your finance problems out, the lenders will try and get it from you with interest.

Mortgage Indemnity Insurance can cost up to £1000. Most borrowers don't realise that it doesn't protect them at all and a recent trend is that the better mortgage lenders are starting to do away with it. Some lenders however still make it compulsory.

How to avoid paying Mortgage Indemnity Insurance
Some mortgage lenders don't seem to charge Indemnity Insurance - but actually they are hiding it by making you pay a higher interest rate or some kind of tie in.
You could check at what level of loan to value it kicks in and borrow just below that threshold. It usually works out about £10 on a £100,000 mortgage.

List of Major Mortgage Lenders

 

OCIS provide general financial information, we urge you to consult an Independent Financial Adviser ( IFA )
before making any important decisions about your finances.

OCIS RH Menu
Consumer Information - OCIS
COMPANY INFORMATION
INDEX A - Z
Consumer Information - OCIS
FINANCE
INFORMATION
INDEX
Consumer Information - OCIS
FINANCE
DIRECTORY -
FINANCE
CENTRAL
Consumer Information - OCIS
INSURANCE DIRECTORY - INSURANCE CENTRAL
Consumer Information - OCIS
HOME
CHEAPER ENERGY BILLS
Energy Helpline
Links - Online Consumer Information Services


Internal Site Links:
About Us - Disclaimer - Privacy Policy - Terms and Conditions - Contact Us/Get Listed - Site Map


© 2003 OCIS