Let’s dispel a myth. You will not be threatened with repossession just because you are in negative equity. Reducing your debt is a good starting point if you are concerned about negative equity.
What is negative equity?
Negative equity simply means that your mortgage is higher than the value of your property – and this can be influenced by the state of the housing market and the financial and economic climate.
If you wish to sell your property, negative equity can be a concern. If, however, you are up to date with your mortgage and secured loan repayments, negative equity should not be considered as an immediate problem.
If you are concerned by negative equity contact your lender directly as they will be able to explain this to you.
This information is provided by Payplan.
For further information please contact the Adviceline.
