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.
Who can we 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.
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.
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.