Definition of negative equity in English:

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negative equity

Pronunciation:

noun

[mass noun]
Potential indebtedness arising when the market value of a property falls below the outstanding amount of a mortgage secured on it.
Example sentences
  • The percentage of the bank's residential mortgage loans in negative equity also fell to below 10 per cent in the quarter, Law said.
  • Strong levels of equity allow buyers trading up to put down sizeable deposits, limiting the potential for negative equity.
  • The amount of mortgage loans in negative equity in the banking sector as a whole also dropped by 17 per cent, it said.

For editors and proofreaders

Line breaks: nega|tive equity

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