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Negative equity |
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Negative equityA situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. For example:Purchase price of property: £80,000Deposit: £10,000Mortgage: £70,000If the value of the property falls below £70,000, the mortgage holder has negative equity in the property.Similar MatchesNegative pledge clauseNegative pledge clauseA bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders. Negative covenantNegative covenantA bond covenant that limits or prohibits certain actions unless the bondholders agree. Negative listNegative listIn an international agreement, a list of those items, entities, products, etc. to which the agreement will not apply, the commitment being to apply the agreement to everything else. Contrasts with positive list. Negative NPV tie in projectNegative NPV tie in projectA negative-NPV infrastructure development project that a local government requires of a company engaged in a positive NPV investment project elsewhere in the country. Negative cash flowNegative cash flowOccurs when spending in a business is greater than earnings. Further SuggestionsNegative income taxNegative amortization Negative externality Negative duration Negative working capital Negative convexity Negative yield curve N Negative Amortization |
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