Meaning & use
mortgage indemnity insurance
Last updated
Meaning
noununcountableBritishfinance
insurance that protects a mortgage lender if a borrower defaults and the sale of the property does not cover the loan.
Grammar: Used as an uncountable noun. It often follows 'take out' or 'pay'.
Patterns
- take out mortgage indemnity insurance
- pay for mortgage indemnity insurance
- mortgage indemnity insurance policy
The bank required us to take out mortgage indemnity insurance because our deposit was small.
Mortgage indemnity insurance only benefits the lender, not the homeowner.
She didn't realize that mortgage indemnity insurance would add to her monthly costs.
Common combinations
- take out mortgage indemnity insurance
- First-time buyers with a low deposit often have to take out mortgage indemnity insurance.
- mortgage indemnity insurance policy
- Read the mortgage indemnity insurance policy carefully before you sign.
- pay mortgage indemnity insurance
- We had to pay mortgage indemnity insurance as a one-time fee.
Synonyms and how they differ
- private mortgage insurance
- The American equivalent; it also protects the lender but works slightly differently.
Commonly confused: mortgage indemnity insurance or mortgage protection insurance?
mortgage indemnity insurance vs mortgage protection insurance
This pays out to the borrower or their family if they die or become ill, not to the lender if the borrower defaults.
Practice
Who does mortgage indemnity insurance mainly protect?
Choose one answer.
Mortgage indemnity insurance protects the lender if the borrower defaults and the property sale doesn't cover the loan. It does not protect the borrower.
Make it your own
Write a sentence using “mortgage indemnity insurance”, then check it and compare it with the examples above.