Mortgage Indemnity Charge
mortgage glossary
Sometimes referred to as a High Percentage Lending Fee
For high Loan to Value (LTV) mortgages i.e. where the loan is not much less than the value of the property, it is common practice for the lender to take out a form of insurance to protect against some or all of the losses incurred if the property needs to be taken into possession because of serious arrears.
This is paid for by the borrower and applies to some mortgages where the lending is over 75% of the value of the house. The insurance only protects the lender, the lender also reserve the right to chase the borrower for an further loses if they occur.
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