Negative Equity Insurance Mortgage
A new mortgage is launched that protects against a price crash
15th June 2005
Newcastle building society has today launched a new mortgage that gives some measure of protection against a property price crash, featuring a guarantee that - subject to limitations - if a homeowner has to sell the property for less than the outstanding mortgage, the negative equity and any redemption fees will be written off.
The new mortgage deal, sold through brokers Charcol, is open to both first time buyers and existing homeowners.
The no-negative equity guarantee only applies when the mortgage payer has made a claim on accident, unemployment or sickness insurance and is forced to sell the property because of this - it does not apply if the property is sold for any other reason.
The 'Triple Protector' mortgage also features a fixed rate until August 31st 2010, adding an additional safety net for those who wish to buy a house but are worried about future interest rate levels.
Read More: Money Guardian
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