Thousands face Negative Equity
Risk for 30,000 homeowners
With more than 30,000 homeowners having taken out 100% mortgage since January 2007, falling house prices mean that these borrowers owe more than their property is now worth.
What should these homeowners do?
Firstly - do not bury your head in the sand - ACT fast
- Action - what other possibilities are open to you
- Control - your costs - is your household budget realistic and can you save in other areas?
- Test - the alternatives
Top Tips
We want to compile a list of the top tips for dealing with negative equity. Have you been in this situation yourself? Share your advice with others - that doesn’t cost a thing.
Our no. 1 tip is -
Seek help from your Mortgage Lender - If you have previously had a good payment record, some mortgage lenders offer aid packages if you’ve now fallen into negative equity.
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This entry was posted on Wednesday, June 11th, 2008 at 11:41 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
I was one of the lucky ones who purchased a house as a buy to let after the property market crashed in 1989. The vendors lost £22,000 and put themselves into more debt which they couldn’t afford. If they had needed to move they would have been better off renting the house rather than selling it and then renting another property themselves until prices picked up again. As it was, I rented the house out for the following 9 years. The rent covered the mortgage and running costs and when I sold it, I made a massive profit as the house had trebled in value by then. My advice would always be not to panick and rush into a sale but look into the rental market instead.