Qualified advisers answering your
Financial Questions
call 0800 092 1245

What will happen to those caught in the negative equity trap?

As literally millions of people across the UK haven fallen into the negative equity trap there are concerns for their short to medium term welfare with the UK mortgage sector apparently unwilling to help. The situation has reached crisis point in many areas of the UK where those who overstretched themselves to climb aboard the property ladder have found themselves on the wrong end of a turning market.

The negative equity situation, which many believe was brought about by the near 100% mortgages available in recent times, has seen many homeowners struggling to keep pace with their mortgage payments and unable to remortgage because of the difference between their outstanding mortgage and the price of their property. Even though repossession numbers have continued to rise across the UK there is a feeling that many banks will turn the screw further as and when the UK property market shows signs of recovery. Could we then see a significant sell-off of property for those who may well have been trapped in a negative equity situation and built up significant mortgage arrears?

Unfortunately, despite all the kind words and promises in the press the mortgage industry in the UK is a business and there is little room for sentiment in the current environment.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details