Definition of negative equity in English:

negative equity

Line breaks: nega|tive equity

noun

[mass noun]
  • Potential indebtedness arising when the market value of a property falls below the outstanding amount of a mortgage secured on it.
    More 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.

More definitions of negative equity

Definition of negative equity in:

Get more from Oxford Dictionaries

Subscribe to remove adverts and access premium resources

Word of the day mage
Pronunciation: meɪdʒ
noun
a magician or learned person