What is negative equity?

If your home is worth less than the mortgage you owe on it, the difference you have is known as ‘negative equity’. For example, if you have a mortgage of £60,000 and your home is worth £50,000, you have ‘negative equity’ of £10,000. This is only likely to be a problem if you want to sell your home. See also 'what does Equity mean?'

Mortgages