Negative Equity Briefing Paper

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Negative Equity Briefing Paper


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  • Significant problems are faced by owner-occupier mortgagors in negative equity, whose properties become subject to compulsory purchase or qualify for the service of a Blight Notice.
  • A draft Voluntary Code dealing with the issue has been produced by the Council of Mortgage Lenders (CML) with input from the CPA. The CPA is consulting its Members and other key stakeholders on the draft code, whilst the CML consults within the mortgage industry. Views are sought by the end of July 2017.
  • The purpose of the code is to help facilitate affected customers to port their existing mortgage product to an alternative property where that is appropriate for the customer and also meets regulatory requirements and lending policies in place at the time.
  • Comments on this proposal should be sent to

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