Negative equity; the mortgage debt you owe is more than the value of the property. And to put it bluntly, a property in negative equity is a liability rather than an asset.
That’s not at all what you envisaged when, full of optimism and brimming with positivity, you bought your home. But sadly, it is your current reality.
Of course, this is only a problem if you need to sell your home or are now unable to maintain your mortgage repayments. If that is not your position, you’re not affected. Provided you are happy to be there and can afford the mortgage you don’t need to go anywhere. Just sit tight and enjoy what you have.
Unfortunately, ‘sitting tight’ is not an option for a great many people. And since you are reading this, there is a good chance that you are one of that sizeable number.
When you can’t ‘sit tight’ and wait it out
It may be that you have outgrown your home because of having children, or you may be divorcing and now need to sell the home you once shared so that you can move on with your life. Maybe your work circumstances have changed, resulting in a reduced income that means your monthly mortgage payment is no longer affordable. Or perhaps you need to downsize because your offspring have grown up and flown the nest to set up homes of their own. Or you could be the surviving partner following the death of a spouse.
There are any number of perfectly valid reasons for wishing or needing to upgrade, downsize, or simple move on. But negative equity is making that impossible.
Now it is true that things may well change. But even if they do, it will be a long time before house prices return to anything like the sort of levels they reached in 2006-07.
Your situation is resolvable
So, if as of now, the amount you owe to the lender who provided your mortgage is greater than the price your home would fetch were you to put it on the open market, you have a debt problem. Such property debt is commonplace because of house prices having rocketed to record highs in the mid-2000s before crashing equally spectacularly in 2008. And although things have begun to improve, property debt or negative equity continues to affect a huge number of people across the UK.
If you are one of those currently unable to sell your home because it is in negative equity. Or if due to a change in your circumstances – you are struggling to make your monthly mortgage repayments, you need help. Now. Urgently. Because not to put too fine a point on it, you have a problem. A serious problems. But serious is not the same as insurmountable, unsolvable or impossible. Your situation can be fixed, your life is not over.
You need expert help
Okay, so now you have the reassurance of knowing that there are negative equity solutions and mortgage debt solutions. Already things are starting to look better. But you also need to know that those to whom you might now entrust your financial survival are reliable, trustworthy experts.
Make this your starting point in deciding to seek help: are those to whom you are looking endorsed by the FCA (Financial Conduct Authority)? If not, walk away from them now.
Why? For the simple reason that there is too much at stake to entrust it to anyone who does not meet the very highest standards and is not regulated, monitored and overseen by and answerable to independent scrutineers who leave no stone un-turned in checking that everything is done properly.
Bona fide experts will have credentials and records to confirm their status. And you can rest assured that they will have solved bigger and more complex problems than any you are likely to present. Thorough knowledge of the day-to-day workings of the property marketplace, the money go-round that is central to its working and the laws relating to both, coupled with them having the total respect of lenders and the solicitors who represent those banks and building societies are these experts hallmarks.
The process should be transparent
Initially the first meeting should be totally free of charge – they will sit down with you and assess your position; your property's value, your income, assets, outgoings and debts, to establish exactly what it is you hope to do. Then, armed with that information, they will offer advice as to your options. If you decide to proceed, you and they will agree on a viable, realistic means whereby your goal(s) can be achieved. They can help you sell, they can renegotiate your mortgage with the lenders, they can arbitrate on your behalf in wiping out tens of thousands of pounds of debt.
But from start to finish the process is wholly dependent on your and their total honesty and integrity. That is the only way to come up with a valid proposal for there is no magic-wand-waving-formula, nor are there any pie-in-the-sky answers to problems. There are properly worked out answers which enable you to solve your problems and get on with living again, free of the worry and the stress of debt – possibly for the first time in years. It is important that you remember you are not to blame for the unsustainable rise in house prices a decade ago, or for the inevitable fall which followed, resulting in your negative equity. You are an unfortunate victim of circumstances which you played no part whatsoever in creating.
You are not to blame
Irresponsibility on the part of lenders who handed out mortgages – often more than 100% of the value of the property – played a huge part in what went wrong. And the role of speculators whose involvement forced property prices to sky-rocket was another major factor. With so much money so readily available at affordable interest rates, Joe and Joan Public entered the melee by opting to get on or climb up the property ladder. Reckless lending led to mortgage repayment problems and arrears, ultimately resulting in the near-collapse of global banking following the crash of Lehman Brothers in September 2008. In truth, the recovery in the aftermath of that is on-going rather than being anywhere near complete.
Was the mortgage you were sold the best one for you? Were there not better options? Do you have mortgage problems as a result?
Certainly, there were cases in which mortgages were mis-sold and Negative Equity UK's team of experts will examine that possibility when they examine your case history. If you were sold an interest-only deal, you certainly need the advice and help of experts at this stage.
So why struggle on alone with a problem you almost certainly cannot solve? It would make a lot more sense to turn to results-proven experts who pride themselves on their ability to find solutions for ordinary, decent people who, through no fault of their own, are deeply ensnared in negative equity, hugely stressed as a result, and wondering what fate awaits them.
How we’ve helped previous clients
We’ve helped hundreds of families move on from negative equity and mortgage debt, and we genuinely want to achieve the best possible outcome for every client we work with. That's why 99% of those who have reviewed our services at reviews.co.uk would recommend Negative Equity UK to others. Here is an independently verified review from a recent customer.
“I was very sceptical at the beginning but didn’t know where else to turn. I read an article on Money Supermarket and the individual said it was too good to be true. On the contrary, the result they predicted on our first meeting was delivered. They made a very stressful process so much easier, doing all the background work, negotiating etc. And always ready to advise. A big thank you, especially to Lesley, who appeared to have genuine interest in our plight and kept in contact throughout, never judging, just being supportive. My £107,000 debt is now £32000. This company WILL deliver..”