What is negative equity?
If the value of your property has decreased you may find yourself in negative equity. This may affect you when remortgaging.
You have a few options:
- Overpay on your mortgage (most lenders allow you to overpay up to 10%).
2. Wait it out until the property value rises.
3. Do try to find another lender when your current mortgage ends, there are some companies out there willing to take this on.
4. Take the loss and sell the property if you are thinking of doing so.
5. Consider becoming a landlord and rent it out if you are able to. Either let a property elsewhere with a low rent or move in with family. If you take this route, ensure you inform your mortgage lender.
6. Stay with your current lender which will probably mean you will be placed on a variable rate mortgage.