Negative equity is the term commonly used to describe the situation of having a home that is worth less than your mortgage. There is no easy solution to the problem of negative equity. You may want a bigger house or need to move to a different area for employment reasons.

Can Negative Equity Affect You?

With house prices having taken a tumble in the past year or so, anyone who bought their home at the peak of the market without much by way of a deposit could be forgiven for feeling a little queasy right now.

It wasn’t so long ago that getting a 100% mortgage. In fact, you could even get one with negative equity built-in (110% or 125%) so confident were we about the endless rise in property value. The council of mortgage lenders (CML) estimated last year that 23,310 people who took out 100% mortgages on properties in the preceding 12 months were almost certainly in negative equity. And it isn’t over yet.

How Far Will Property Values Fall?

Most independent observers agree that the housing market may not recover until 2011 – or maybe later. But that’s as far as the consensus goes. Industry predictions about house prices and how much they will fall in that period vary enormously (the most pessimistic estimates cite up to 30%). You need to make up your own mind about what’s actually happening in your area. Are properties still selling? How hard are the developers having to work to shift their new developments? Obviously the more values fall, the more homeowners with high loan-to-value mortgages are likely to be hit.

What Can You Do If You Are Suffering From Negative Equity?

If you are worried about negative equity and looking for a solution to solving the problem then contact SellYourHouseUK now. We are one of a few specialist companies within UK who can help people that are faced with the growing problem of negative equity. We have helped many people move on from this dilemma and will be more than happy to do the same for you.

Call us now on Free Phone 0800 848 8646 to see how you can become free today!!