Mortgage Impairment and Indemnity
New Zealand and Australia
Dashwood Brewer & Phipps Ltd have pioneered a facility that provides mortgage indemnity cover for both residential and commercial clients in New Zealand and Australia. Clients are able to improve their funding for large projects by utilising insurance to enhance their credit. The cover also includes mortgage impairment which protects the lender in the event of a the property being destroyed and no cover being in force.
The facility has been running for over six years and is fully supported in the Lloyd’s Market.
This product is designed to protect non-bank lenders and their investors, developers and property owners against financial risks.
The Mortgage Indemnity Insurance and Mortgage Impairment Insurance policies protect these lenders and investors in various types of “pooled” contributory mortgage/debenture funds against loss of investor capital. The policies provide cover for any shortfall that may occur following default by the borrower, leading to a mortgagee sale of the property which has been offered as security over the loan insured.
The policy also provides “back up” protection in the event that the primary insurance policy covering the asset fails to respond to a claim.
UK
Dashwoods also has experience of UK mortgage indemnity schemes. UK mortgage lending institutions can protect their portfolios against borrower defaults and housing market crashes.
