Glossary

The bane of the housing market, 'Negative Equity' describes the situation in which a property becomes worth less than the loan secured upon it. Unfortunately there are no straightforward ways to solve the issue, but in all cases, the borrower should contact the loan provider straight away for 'damage limitation' purposes. In the worst case scenario no action will be taken, but occasionally the situation can be alleviated if the lender consents to allow the property to be rented out, or secures the shortfall debt against another property purchase. Certain third party lenders may also assist in situations of Negative Equity – for further advice, please contact us.