In the UK in May house prices fell 0.2% from April according to the Nationwide building society, while in Northern Ireland 69% say they are worried about your negative equity house.
These suggest that many homeowners are still stuck in the negative equity trap.
The YouGov survey conducted on behalf on HomeOwners Allicane, BLP Insurance and Resi.co.uk discovered that almost seven in ten people in NI are worried about negative equity, compared to almost half the population across the rest of the UK.
But what is negative equity?
A property is in negative equity if it’s worth less than the mortgage secured on it.
An example of this if you had bought a property for £150,000, with a mortgage for £120,000 and the property is now worth £100,000, you would be in negative equity.
It’s estimated that there are around half a million properties in negative equity in the UK, although some areas are affected far more than others.
In Northern Ireland up to two out of every five properties bought after 2005 are in negative equity.
As a company we have a proven track record having achieved an average write-off of 77% for our clients in 2018.
And since 2013 we have achieved a write-off rate of 96.6% for our clients.
Our service is also 100% confidential and regulated and authorised by the Financial Conduct Authority and we can help.
Many people have questions about how striking a deal about your Negative Equity impacts you and here Tom Cardwell (Director) gives his thoughts on frequently asked questions.
What is the likely effect on your credit rating by a negative equity settlement?
“It is a prime concern for customers who come to us. Most of our clients have more than one property. They have their own home that is in positive equity and they might have a buy to let property between 2004 and 2008 that is in significant negative equity.
“They are concerned about dealing with their negative equity in case it affects their home.
“That is why we employ a detailed case review service to look into the clients circumstances and then look at the options they have. In a vast number of the cases we are able to deal with the negative equity problem without any impact to any other assets the client owns.”
Can I sell a negative equity property and negotiate an agreement if I have other properties?
“This is another common problem that people come to us with as they have one or more properties in negative equity. They might also have no debt on a property and maybe one that is in significant positive equity.
“Once we have completed our review process we will have a good idea what kind of settlement and deal that can be done with those properties and their negative equity.
“In the majority of circumstances there is no detriment to the equity in other assets,” added Cardwell.
How do you know how much my settlement is going to cost?
“Having completed hundreds of negative equity samples over the last few years we have a good understanding of what is needed although these differ with each case.
“At any one time we could be dealing with over 700 live cases with a variety of lenders. At the very start of the process we complete a case review for you.
“And in that process we access your current and future affordability and look at the level of your negative equity. Look at who your lender is and look at your documentation.
“We pull all that information together and that will give us a good indication of what it will cost you to end your negative equity debt and you will be free of it.”
How much does a negative equity settlement cost?
“The cost of settling negative equity differs depending on your affordability, your age, your health, which lender we are dealing with.
“And it also depends on the terms around the settlement itself. In the vast majority of cases we negotiate a debt reduction of 75% or more of the negative equity sum.”
Is selling a negative equity property the only option?
“Sometimes selling a negative equity property is not always the best option. When we complete a case review we look at all the available options for the client.
“And what makes us unique in that field is that we have a FCA license as well as having permission to negotiate financial settlements for clients, we also have a credit broker license so we can propose a new way forward to the deal is that is appropriate,” added Cardwell.
And the proof that we deliver on what we say can be seen at www.reviews.co.uk
Here are a few examples of people we helped out of their negative equity problems.
Stewart – “I highly recommend this company. We were told exactly what would happen and there was guidance every step. Once the initial paperwork was completed we didn’t need to do anything.”
Denver – “I found they gave a helpful service. They helped keep stress levels down and understanding of our situation. Would recommend them for people in hard financial situation with their homes.”
D&E “Got us a fantastic outcome. Over £100,000 of negativity equity and unsecured debt settled for £27,000. Onwards & upwards.
As the leading negative equity company speak to Bob or Neil today on 0161 660 4403 and see how we can help you.