Negative equity
Negative equity means your property is worth less than the mortgage you owe on it.
It can happen when house prices fall, particularly if you bought with a small deposit. It does not cause problems if you keep paying and do not need to sell, but it can make it hard to remortgage or move.
If you are in negative equity and struggling, speak to your lender and a free adviser. Options may include overpaying when possible, staying put, or agreeing a plan with the lender.
An authorised mortgage adviser can explain how this applies to your circumstances, and MoneyHelper offers free guidance. Your home may be repossessed if you do not keep up repayments on your mortgage.
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10 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.