A recent fall in property prices due to the effects of the economic downturn has seen a rise in the number of property owners suffering from negative equity. Despite the undesirability of negative equity, the problem is one which will not immediately affect those who are planning to stay in a property for the longer term. However, if considering moving, remortgaging, or taking out a second mortgage, then negative equity may present a greater issue.
Property Investment: What is Negative Equity?
In the first instance negative equity is simply that an individual has a greater level of outstanding finance on a mortgage than the value of the property against which the mortgage is secured.
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