Negative Equity

Jargon Buster
Mortgagor
15th May 2019
Offer of Loan
15th May 2019

This situation occurs when a mortgage is greater than the actual value of the property. This can occur due to a decline in the value of the property after it is purchased.

For example, if the mortgage on the property is £300,000 but the value of the property is only £270,000 then a negative equity situation has occurred.

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