Dealing with negative equity? Will I have to rent forever?
| Overview
At Negative Equity UK, one of the questions we are asked most often by our clients is, will dealing with my negative equity mean I have to rent forever?
It’s an understandable worry. For most people, owning their own home gives them security and stability and dealing with their negative equity can have an effect on your credit rating.
The good news, however, is that for most people sorting out their property debt won’t force them to rent for the rest of their lives.
How easy it will be for you to get a new mortgage will depend on a number of factors including how much negative equity you have on your existing property; your settlement with your lender; the value of the property you want to move into; whether you have arrears on your current mortgage and how quickly you can raise a deposit.
Whatever your circumstances, your chances of being able to buy a new property are only improved by taking steps to deal with your existing negative equity problem as soon as possible. Waiting and hoping the situation improves on its own will only make it harder for you to get back on the property ladder in the long run.
| How can we help?
There are a number of possible solutions we can offer to resolve your property debt problems, depending on your circumstances,so you don’t have to rent forever. For many of our clients a sale and settlement is the only solution to their problem.
We have successfully negotiated hundreds of cases every year where we have arranged the sale of our clients’ homes and reached an affordable debt settlement with the lender.
For other clients remortgaging might be their best option and, in some cases, we might pursue an individual voluntary arrangement, or IVA. This is a legal agreement between you and your lender and is suitable for people who have debts with multiple lenders.
Whatever your circumstances, the first step to dealing with your property debt is to contact Negative Equity UK for an initial free, no obligation consultation with one of our advisors.
Take a look at our reviews and call us on 028 9018 3223 or go to our website and arrange for us to call you at a time that suits you.
How is home equity calculated?
Home equity is calculated by subtracting the amount you still owe on your mortgage from the current market value of your home.
Can you have negative equity?
Yes. With standard loans, your home equity will increase over time. With negative-amortizing loans — a loan with monthly payments less than the interest rates — your equity decreases over time as your owed balance increases.