Negative equity - A situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. For example:Purchase price of property: £80,000Deposit: £10,000Mortgage: £70,000If the value of the property falls below £70,000, the mortgage holder has negative equity in the property.
Negative equity : a situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. for example:purchase price of property: £80,000deposit: £10,000mortgage: £70,000if the value of the property falls below £70,000, the mortgage holder has negative equity in the property.
Negative equity