I'm searching for an insurance policy to protect against negative equity on a residential real-estate.
The risk I'm trying to protect against is that house prices will fall.
I'm looking for something like this: https://www.professionaladviser.com/ifaonline/news/1321187/brokers-offer-insurance-negative-equity
Homeloan Partnership (HLP), the mortgage network, has signed a deal with Equity Protection Policy (EPP) which would give homeowners access to a new insurance product which protecting them against a sudden fall into negative equity.
But I cannot find the policy on their website: https://www.hlpartnership.co.uk/ 🤔
This is especially true with Help to Buy (assume this question is located in the United Kingdom):
- access to cheap credit, pumping the prices
- properties are by definition newly built, therefore there is no opportunity for improvements to increase the value
Background, definitions (not really a core question)
Definition on the wiki: https://en.wikipedia.org/wiki/Home_equity_protection
The protection is for a new or existing homeowner that wishes to protect the value of their home from future market declines.
When searching for negative equity, I get plenty of results but not a single mention of an insurance product:
It’s estimated that there are around half a million properties in negative equity in the UK, although some areas are affected far more than others.
Clearly such term exist, it is well defined.
UK House Price Index shows that prices go up and go down:
Somoeone asking on the forum: Where Can I Get Insurance Against House Price Falls?
Can you get insurance against the value of your stock portfolio falling, or the price of gold dropping?
Well, you can, various financial products, derivatives, futures, options. I'm not an expert, just playing bullshit bingo.
My one concern is that when the bonds fail... I want to be certain of payment in case of solvency issues of your bank.
How can I get such insurance?
EDIT / UPDATE: Seems like I've been downvoted. I understand the question includes background, definitions (not really a core question) but there is a reason to provide background information, so that you can better understand the situation and correct any potential mistakes.