Negative Equity Property is a huge problem in the UK that no-one seems to want to admit, recognise or try to sort out.
It is like a ticking time bomb just waiting to explode and there are going to be a lot of casualties.
We do not want you to be a victim of this serious debt problem that has been thrust upon you.
The Negative Equity Property Problem
Many people bought properties at the height of the property boom, only to find out that now their property has reduced in value considerably.
However, the mortgage balances have not reduced considerably because a high percentage of the properties were purchased with interest only mortgages. This means the mortgage balance amounts have stayed exactly the same.
Where you have property that is worth less than the mortgage secured on it, you have negative equity.
The financial experts (so called) at the time said it would be all be sorted within a couple of years with some saying maybe 5 years at the most.
With many years now past, property values have still not recovered back to where they were.
It is estimated that hundreds of thousands of property owners are currently in negative equity property throughout the UK, with some only slowly waking up to the serious situation they are in now.
Get in touch for a no obligation free consultation about anything worrying you about negative equity: firstname.lastname@example.org.
Negative Equity Mortgages Terms Running Out
The length or term of the mortgage when taken out always seems to be a long way away and does not concern us when we sign for our new property at the solicitor’s office.
However, many are finding now that the end of the mortgage term is looming very close and that their properties will never ever regain the severe losses suffered in the length of time that is left.
Some people are reaching retirement age, have a large mortgage which is well in excess of the current value, which puts them in negative equity, with seemingly no way to get out of it or nowhere to turn.
Others know they have a major problem, but have no idea what to do or how to get out of it. That is the reason for this section.
To help property owners that are in negative property equity escape!
If you’re struggling with negative equity on your property, you’re not alone. In the current economic climate, many people are finding themselves in this difficult situation. If you’re considering bankruptcy or an IVA, there are a few things you should know about how these options could affect your mortgage.
When you’re struggling with negative equity, it can feel like you’ll never be able to get out from under the debt. However, there are options available to help you manage your debt and get your finances back on track.
Bankruptcy and IVAs are two possible solutions, but it’s important to understand how each one could impact your mortgage. If you declare bankruptcy, your mortgage will usually be included in the debts that are wiped out. This means that you’ll no longer have to make any payments on the mortgage, but it also means that the property will likely be repossessed.
An IVA may allow you to keep your home, but you’ll still need to make regular payments towards the debt. It’s important to speak with a financial advisor to learn more about these options and find out which one is right for your situation.
Find out about things like how to avoid negative equity, is negative equity bad, selling house in negative equity and negative equity shared ownership.