Negative equity protection launched

26-Apr-2005

First time buyers are to receive some protection against the dangers of negative equity under a new mortgage launched by Charcol.

Click here for advice on first time buyer mortgages or to find out how much you can borrow and how much it will cost you, from the UK's leading High Street Brokers, Bradford and Bingley.

Aimed at aspiring homeowners, Charcol's Triple Protector mortgage is the latest mortgage on the market which is designed to allay concerns of a property crash by boosting the number of first time buyers entering the market.

The mortgage has been created to cover any shortfall that may exist between the property's value and the debt if a homeowner is forced to sell in "adverse circumstances".

Click here to ask about the legal costs of house-buying or to ask a legal question specific to your own situation.

It is hoped that such mortgages will help stave off any crash in house prices by reassuring aspiring first time buyers that, even if the market does fall over the next few months, they will be protected by their mortgage and not suffer unnecessary hardship as a result.

Creative mortgages are becoming increasingly popular with first time buyers, as many are old enough to remember the misery negative equity caused during the late 1980s, when a crash in house prices resulted in more than a quarter of the value being wiped off some homes in the south east of the UK.

Experts have recently repeated their warning that there is a lack of first time buyers entering the market and that could precipitate a prolonged depression in property prices.

Click here for our first time buyers guide.

Click here for further information on finding a deposit.

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