Mortgage Indemnity Guarantee(MIG)

Mortgage Indemnity Guarantee (MIG) is a type of insurance policy offered in the United Kingdom by mortgage lenders to protect them from losses incurred in the event of a borrower defaulting on their loan. The purpose of MIG is to protect the lender against any losses or costs associated with repossessing the property and the sale of it in the event of a borrower default. MIG also provides indemnity for any shortfall between the amount owed to the lender and the sale proceeds. This insurance is typically purchased by the lender at the time of loan origination, and may be paid for by either the borrower or the lender. The scope of MIG typically covers all types of residential mortgages, including owner-occupied, buy-to-let, and remortgages.