Getting a Fair Deal on a Mortgage

8. What other charges will I have to pay?

• Will I have to pay for a Mortgage Indemnity Guarantee (MIG)?
• • How much will it cost?
  • Do I have to pay it upfront?
• What other charges do I have to pay? (If the fees are part of getting the mortgage)
• • How much will it cost?
  • Do I have to pay them upfront?

A MIG is normally required when you are borrowing a large percentage of the value of the property. It is designed to make sure that the lender is paid, if you don't pay the mortgage. Most lenders will ask for the money as part of the mortgage deal. Some lenders will suggest that they add the cost of the MIG to your mortgage. This will mean that you would pay interest on it for the whole lifetime of your mortgage. You should also know that the MIG protects the lender, not you. The insurance company may still ask you to make up any payments you miss.

Some lenders will charge fees for fixing your mortgage, or for a particular type of mortgage. Fees may be very high if you have a poor credit record. Some lenders will suggest that they add these costs to the mortgage. This will mean that you would pay interest on these fees for the whole lifetime of your mortgage.

Lenders have a variety of charges that they may make during the lifetime of your mortgage, for providing a reference, for loaning the deeds to a solicitor, for returning the deeds to you etc. Make sure you are happy that these are reasonable.