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Your property is in negative equity if the value of your home is less than the mortgage secured on it. For example, if you bought the property for £150,000 with a £120,000 mortgage and your home is now worth £100,000, you would be in negative equity. You may not know whether or not you’re in negative equity. To find out, check the current market value of your home and compare it to the amount outstanding on your mortgage. If your property value is lower than your mortgage balance, you are in negative equity. What can I do about negative equity? How easy it is to sell your home with negative equity will depend on how much you owe, the value of the property you want to move to and whether you are up-to-date with your existing mortgage payments. What do I do if I have negative equity? Renting out your home if you are in negative equity. Another option might be to rent out your home if your lender will agree to this. This would mean you keep the existing mortgage, although you will probably have to pay a higher interest rate. You would also have to tell your insurer. Can you sell a house with negative equity? Because your house is worth less than your mortgage – and so you are in negative equity – you can’t sell it without your lender’s permission. However, that would be an expensive option and the monthly repayments would be taken into account in any application for a new mortgage. Can I get a loan to pay off negative equity? If you’re in a financial bind, another option is to go through with a private sale, then take out a personal loan to cover the negative equity. The monthly payment could potentially be more affordable, and once it’s paid off, you’re off the hook entirely. Brought to you by DealSourcing.co. DealSourcing.co puts the power of automation in your hands. Search over 200,000+ Below Market Value deals (Buy-To-Let, HMOs and BRRR) with ROIs above 15% with the click of a button. Find High Yield properties with our efficient and easy-to-use tools.