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Here’s an example of how negative equity works:
Your property has an outstanding mortgage balance of £200,000
When you first purchased your home your property value was £200,000, but due to market fluctuations, it is currently valued at £190,000
In this case, you are in negative equity by £10,000
Having negative equity can make things trickier if you want to explore options such as selling your home or remortgaging.Back to "What's in this guide?"