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negative equity

British  

noun

  1. the state of holding a property the value of which is less than the amount of mortgage still unpaid

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

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But he is aware there is a greater risk of falling into negative equity with a no- or low-deposit mortgage.

From BBC ● Sep. 17, 2026

Car companies will often offer incentives to help their trade-in customers offset negative equity, with some brands tending to offer more because their cars depreciate faster.

From MarketWatch ● Apr. 28, 2026

The average underwater trade-in now carries $7,183 in negative equity, according to Edmunds — with the largest share, 41%, being underwater by $5,000 or less.

From MarketWatch ● Apr. 28, 2026

High pandemic-era car prices and elevated interest rates caused negative equity, leading to longer loan terms for buyers.

From The Wall Street Journal ● Apr. 26, 2026

A 2024 study found borrowers rolling over negative equity were more than twice as likely to face repossession within two years.

From The Wall Street Journal ● Apr. 26, 2026

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