Negative equity

Negative equity occurs when the value of an asset (your property) falls below the amount of the mortgage taken out to buy it.

In the early 1990's, more than 1,000,000 people found themselves in negative after the UK economy was being ravaged by a strong property market recession.

In 2008/2009 there is a fast rising number of property owners falling into negative equity due to the financial crisis and the credit cruch.

This will affect you credit rating and put you in an adverse credit situation.