In view of your correspondence I would advise you that the insurance guarantee premium, which was deducted from the Society's advance funds, is in fact a one off payment.

As the Society will only lend up to 75% without additional security, an indemnity premium is incurred on loans above the aforementioned figure.

The taking of such a premium is necessary in order to cover a loss on sale if a property was taken into possession. At such time the Society are then able 'to approach the appropriate insurance company for a reimbursement up to the level which the guarantee premium covered.

I now trust this information answers the enquiry raised. If however any further details are required please do not hesitate to contact me.

Yours Sincerely

(Signature)

Y Pinder (Miss)
Advances Department