Compulsory protection for mortgage indemnity guarantee scheme - Reinsurer

It suggested that the industry should be urging government to insist borrowers take out a minimum level of protection to be eligible for it. The scheme is a key part of the coalition's housing strategy and will see government underwrite mortgages up to 95% loan to value (LTV) on new build properties. Lenders will provide loans with significantly lower deposits than the 20% or more that is typically demanded, but taxpayers could be liable for losses in the event that a home is repossessed. The reinsurer believes that given the risks to the public purse, compelling a minimum level of...