Our definitive guide to negative equity.
| What is negative equity? Why is it a problem? What can be done to deal with it?
At Negative Equity UK, we know that our clients have questions. Most people don’t spend their time thinking about negative equity, IVAs and interest rates, but at Negative Equity UK we spend every day dealing with these issues. So, to help potential clients understand their situation and what we can do to help, here is our definitive guide to negative equity.
| What is negative equity?
Essentially, negative equity describes a situation where a property is worth less than the outstanding balance of the mortgage which was borrowed in order for the homeowner to buy the property.
For some borrowers negative equity is manageable, if they can stay in the property and keep up with their repayments, but for others who need to move or who can’t afford the cost of the
mortgage negative equity can be a crisis.
. What is negative equity?
. Questions about negative equity?
. House worth less than the mortgage?
. Mortgages and negative equity.
| Who Can Help?
At Negative Equity UK, we see clients from a wide range of backgrounds in all sorts of different circumstances. Some of our clients have had a change of circumstances, such as losing a job or becoming ill, that has made their mortgage unaffordable, others took out interest only mortgages without a way to repay the principal loan. Whatever the situation, we can help.
. Property debt help.
. Interest only and no way to pay?
. Divorce and negative equity.
. Outgrown your home and trapped by negative equity?
. Landlord in negative equity?
. Mortgage arrears and negative equity.
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.
| Dealing with negative equity.
There are a range of possible solutions that we can use to help deal with negative equity and which is appropriate in any given case will depend on the client’s needs and circumstances. For most people, an informal settlement with their lender will be the best option. In other cases we would look at an Individual Voluntary Arrangement, or occasionally, bankruptcy.
. Why would banks write off mortgage debt?
. How do I get out of negative equity?
. Selling a property in negative equity.
. Do I need to go bankrupt?
. Dealing with negative equity.
| Settled cases and success stories.
At Negative Equity UK, we have successfully completed hundreds of cases writing off millions of pounds in unsustainable and unaffordable mortgage debt, helping our clients to move on from their financial problems. Take a look at our settled cases and reviews to see how we can help you.
. Settled cases.
. Client feedback.
If you’re looking for a solution for your negative equity or other debt problem, then get in touch with Negative Equity NI. Call us on 028 9018 3223 or fill out a contact form on our website and we’ll get back to you at a time that suits you.