Mortgage warning as fears buyers could be left with negative equity and ‘expensive rates’ | Personal Finance | Finance


“However, it’s important to remember that mortgage providers will have the final say on how much they’re willing to lend.”

Compare mortgages and choose the right one

“For buyers with deposits that only equate to a small percentage of the overall property value, choosing a shorter mortgage term could reduce the risk of negative equity in the future – as you pay off more of the balance of the debt each year – but you need to make sure that the higher repayments are affordable,” the senior personal finance editor said.

Can you overpay your mortgage?

If one does discover their property is in negative equity, there is action which can be taken, Mr Andrews suggested.

“If you discover that your home is in negative equity, then overpaying on your mortgage could be an excellent way to resolve the issue,” he said.

“Most lenders allow borrowers to overpay a percentage of the mortgage without a charge – it is usually between five percent and 10 percent each year.

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