New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Mortgage lenders should offer negative equity cover, says expert
Thu, 06 Apr 2006
All mortgage lenders should offer cover for negative equity, one mortgage expert claims.

Murdo McHardy, the head of product development and marketing at Scottish Widows Bank, says that this practice is "fairly standard" across the mortgage industry.

He notes that equity release is becoming an increasingly popular way of raising capital, because of significant increases in house prices previously.

However, he advises Britons to ensure that the mortgage lender they choose also offers negative equity cover .

Negative equity cover implies that should the property value fall, debt also decreases. Therefore mortgage holders are protected in the sense that outstanding debt after the sale of a property following the owner's death will not be passed on to loved ones left behind.

The provision of negative equity is something that all "reputable" mortgage lenders should offer, according to Mr McHardy.

"You should be wary of any companies that don't offer this," he warns.

The option to release equity of a property is regarded by many as a feasible option, especially considering the fact that house prices have tripled since 1990.

Equity release allows homeowners to take the value of this price increase via a loan or a mortgage.

Link to this page

Copy and Paste the following HTML into your page.

Mortgage lenders

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.
Browse

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.
Sign the petition

Free mortgage quoteFree Mortgage Quote

Apply Here

Mortgages in Scotland Mortgages in Scotland

Read More

Equity releaseEquity Release

  • Unlock equity in your home.
Apply Here

Switching mortgagesSwitching Mortgages

Read More

Home reversion plansHome Reversion Plans

Apply Here

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?
Apply Here

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation
Apply Now

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover
Apply Now

Mortgage Newsletter