What Is Private Mortgage Insurance?

Private mortgage insurance, which is also referred to as a lenders’ mortgage insurance, refers to the insurance policy that borrowers must provide if they can only come up with a down payment that is less than 20% of the total value of the property a borrower wishes to purchase. This type of insurance ensures that the lender remains protected if the borrower defaults on his or her payment for any reason.

Online Help for Securing a Loan

If you are the type to need private mortgage insurance in order to secure a loan, you may have a hard time finding a bank or financial institution that will approve your application. One way of increasing your chances of obtaining a loan successfully is by working with independent brokers. One such firm is privatefinance.co.uk. In one of its recent deals, it was able to offer its client a maximum loan of £500,000, with the initial rate at 4.49% while the annual percentage rate (APR) is at 4.8%. This was for clients who were only able to put up a 10% down payment.

Another such firm is Genworth Financial, with its website at genworth.co.uk. If a private mortgage insurance holder has one of its borrowers defaulting, the client only has to notify the company, and he or she will be able to receive reimbursement or coverage for his or her loss within a pre-agreed time period.

Be reminded that private mortgage insurance is different from a private mortgage. The latter is not a type of insurance, but rather a mortgage or loan offered by a private entity. This may be an individual, a business or a corporation. This type of mortgage is unregulated by law and as such may have higher-than-usual interest rates.

United Kingdom - Excite Network Copyright ©1995 - 2021