Struggling with mortgage arrears and negative equity? We can help.
| Overview
Taking out a mortgage and buying a house is the biggest financial decision most people will make in their lives. No one makes this decision with the intention of falling behind on their payments or not paying back the loan, but sometimes situations arise which make it impossible for borrowers to meet their mortgage costs.
This situation is even worse when the value of your home is less than the outstanding value of the mortgage on it. This is known as negative equity and it compounds your problems with arrears.
If left unresolved, mortgage arrears could ultimately lead to your property being threatened with repossession. Negative equity gives you less scope for dealing with your debt because selling your property will not generate enough to pay off your mortgage or arrears, leaving you burdened with the shortfall.
Negative equity has become quite common in the UK since the financial crisis ten years ago, when house prices collapsed, forcing down the value of many peoples’ homes and leaving them owing many thousands of pounds more than their property was now worth.
At Negative Equity NI, we’ve seen hundreds of clients who can’t pay their mortgage and have fallen into arrears for a range of reasons. Some people have lost their job or had their working hours cut. Others bought their house before having children, only to find their costs becoming unmanageable once they start a family. In some cases, an illness has forced them to leave work or make changes to their home.
Whatever the source of your mortgage problems, the consequences of falling into arrears can be serious. In the worst case scenario, you could potentially lose your home and damage your credit rating badly enough you may struggle to borrow again.
With arrears mounting and your property already in negative equity, you need to take steps to deal with your debts. Holding out for your circumstances to change is not going to help and waiting could make the problem worse.
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.
| How We Can Help?
At Negative Equity NI, our team of property debt specialists offers a range of possible solutions based on your situation. Whatever your circumstances, the process starts with a case review. We will obtain all of the original documentation on your mortgage from your lender so we can assess your needs and work out the best way for us to help you.
Rather than take a one size fits all approach, we off bespoke solutions based on our clients’ specific problems and financial circumstances.
Many people need to sell their house in order to deal with their debt. In this case, we can arrange a shortfall sale and negotiate with your lender in order to write off as much of the remaining debt as possible, leaving you with a much smaller amount left to pay.
If you’re in arrears on your mortgage, or you’re trapped in a property in negative equity and you need to move on take a look at our reviews and contact us on 028 9018 3223 or fill out a contact form on our website and we will arrange a call back and start the process of dealing with your property debt.