Commenting on the move, Mark Harris, director of SPF, said: “The statistics from CML back up our calls for the abolition of MIG. With defaults on loans significantly lower than they were when MIG was first introduced, due to current levels of affordability, low unemployment and the resilience of the housing market, we believe it is an unnecessary evil. We recommend would-be borrowers seek specialist advice to ensure they are well informed about insurance options available to cover mortgage repayment risks.”
With MIG, the borrower pays a premium to provide the lender with insurance should the borrower default on his/her payments. MIG does not prevent the borrower remaining personally liable for any outstanding debts.
