How can I avoid Lenders' Mortgage Insurance?
There are two main ways to avoid paying Lenders' Mortgage Insurance (LMI):
- Save your 20% deposit - by saving a deposit amount that represents the full 20% of your purchase price, you won't have to pay LMI.
- Consider a guarantor - If you're unable to save the full 20% deposit, applying for a guarantor loan, like our Family Pledge loan is another way to avoid LMI. This loan lets you use the equity in your guarantor's property to help you secure your loan, or a portion of it. This means that as you make repayments on your loan, you gradually pay out your guarantor, and the loan becomes fully yours.