The dramatic falls in property prices since 2007 when they were at their peak, have left many homeowners in negative equity – in other words, owing more on their mortgage than their property is worth.

The Financial Services Authority certainly agrees that negative equity is a real problem. It states that as many as one in five households now face negative equity.  With an estimated overall fall in prices of 30% from their 2007 peak. These figures mean that some 2.5 million loans will be in excess of the value of the property against which they are secured.

For homeowners who have to move house or who are having trouble meeting their mortgage repayments the negative equity trap can have serious consequences, compounded by the fact that selling up can be a difficult and lengthy process during which mortgage arrears escalate.

It may seem that the homeowner has little choice in such circumstances other than to allow their home to be repossessed. But repossession is far from an easy way out and should be viewed as a last resort because of its ongoing consequences in terms of future borrowing and effect on personal credit ratings. Far better to sell the home and prevent repossession. But when you have negative equity this can become a real problem.

There remains a certain way to sell your home despite the turmoil in the property and financial markets.  Urban Square Property will give you a valuation for your home and, if you accept that valuation, we will buy your property regardless of its location or the type of home it is. Although no one can improve the current economic situation is it good to know that there is a guaranteed way of selling property in a crisis. We can take all the stress away and usually complete within 30 days. No Chains, No Banks.

For more information contact Urban Square Property on 0800 228 9292. All calls are in complete confidence and without obligation.

Lisa Hudson

Author Lisa Hudson

Lisa Hudson is the Managing Director at Urban Property Square. She is passionate about helping customers by taking the stress out of buying and selling properties. By working closely with all her clients she can provide creative solutions specific to your circumstances.   Find out more about Lisa on her LinkedIn >> 

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