Muppet Question & Off Topic

[lincs]

Ok this isn't really about accounting but here goes anyway (there's no off topic forum)

If a house is in negative equity, what are the downsides to this?

I can only see:

1) Obviously your gutted that you bought a house that lost value.
2) You can't sell up and move to another house because the proceeds won't even pay the old mortgage.

But is there anything else? Someone tried to tell me that you'll be forced onto a variable tracker rate mortgage but not to sure about this.

Any comments? ta....

[claudialowe]

Can't think of anything else Lincs - cant see that you can be forced to change your mortgage UNLESS you are in arrears... but that is a totally different kettle of fish.

Claudia

[phunkyphantom22]

You might be able to move house, but you would have no deposit and may be able to add on what you owe from the old house to the new mortgage - can't say I'd really recommened that option though, doesn't seem too sensible!

Your best bet is to speak to a financial advisor and see what your options are....

[deanshepherd]

No problem with negative equity until you cant afford the mortgage repayments..

Or you want to move..

Or you want to remortgage..

..then you are paddleless up the proverbial creek.