A new mortgage launched jointly by John Charcol and Newcastle Building Society offers several layers of protection for borrowers, both against sickness and unemployment and against negative equity.
The innovate Triple Protector plan provides eligible customers with free Mortgage Payment Assistance Cover to help borrowers meet payments in the case of sickness, accident or unemployment for up to 12 months to a maximum monthly payment of £1,500.
Negative equity, where a house devalues to less than the price paid by the buyer, is also taken into account by the new mortgage.
If the mortgage has been paid wholly or partly by the Mortgage Payment Assistance policy for at least six months, the borrower has a three-month window during which they can give notice of intention to sell.
Provided a sale is completed with 17 months of the initial claim, the any negative equity as a result of the sale will be written off by the lender.
"By offering a five year fixed rate and insurance protection against both income loss and house price falls, this mortgage offers the best of both worlds - peace of mind and a rate that is not loaded to reflect the unique protection it provides," commented Robert Hollinshead, chief executive of Newcastle Building Society. Click here to find out more about mortgage protection.
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