Negative Equity Solutions

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What is Negative Equity?

Negative equity is when a property is worth less than the mortgage on it.

Here's how to work it out:

If you bought a house for £200,000, and you took out an interest only mortgage for £175,000. Now, the latest market value for your house is £135,000.

As a result, you have £40,000 of negative equity as your mortgage is worth more than the value of your home.

Why is negative equity an problem?

If you want to sell your home and the mortgage you owe is more than the value of the property, then you’re essentially in debt.


Going back to the example above, let’s say you sell your property for £135,000, but you have the £175,000 mortgage.


Now, you still have an extra £40,000 to pay back to your lender.

The negative equity crisis traces back to the housing crash in 2008; its been over a decade and people are still suffering the consequences.

Do not worry! There are solutions that could help you with the situation you are in.

The 5 Options:

Mortgage Write-downs

A mortgage write-down involves evidencing to your lender that your current situation is no longer tenable due to a change in affordability, propose a solution that suits all parties.

This approach to the situation helps the borrower move on in a responsible way without causing too much stress.

IVA's and CVA's

IVA: Individual Voluntary Agreement

CVA: Company Voluntary Agreement

For both IVA and CVA, the principle is that you pay back a portion of your debt over a time period using a payment plan.

Some of the debt is written off. For CVA, companies can still trade during the payment period. 

Mortgage Debt Restructuring

Mortgage Debt Restructuring is where the original mortgage terms are renegotiated in order to make the debt easier to pay back. This could include extending the term of your mortgage.

There may be a way to renegotiate so you only have to pay the equivalent value of your home.

Mortgage Re-broking

Mortgage Re-broking is when you find a mortgage product more suitable with a different lender. This involved analysing your current situation and presenting your case to a new lender.

This means arranging for a revised version of your mortgage contract that suits your situation better.


One of the main causes of the 2008 market crash was the mis-selling of mortgages. Banks and lenders were practically giving mortgages to anyone. This meant that many ended up with mortgages they couldn't afford in the first place.

We could take your claim that you were mis-sold your mortgage if we have the evidence to prove this, which if successful could get you compensation.