negative equity - help please

peppapig14

excuse the dumb question but new to house buying.
looking to exchange as soon as lock down lifted with 5 year fixed deal ( putting down 25% deposit )
we are hoping to overpay and at end of fixed rate deal there should be approx £140k left on mortgage. If we were to sell at £205 would we be classed as negative equity as we would have spent approx 12k overpaying, and spent funds renovating the property- this our deposit would be half of of what we pitbdown. Or would it not be negative equity due to difference in sold price and amt left on mortgage  ( and the negative effect would be the deposit would have gone down ) 

[Deleted User]

peppapig14 said:

excuse the dumb question but new to house buying.
looking to exchange as soon as lock down lifted with 5 year fixed deal ( putting down 25% deposit )
we are hoping to overpay and at end of fixed rate deal there should be approx £140k left on mortgage. If we were to sell at £205 would we be classed as negative equity as we would have spent approx 12k overpaying, and spent funds renovating the property- this our deposit would be half of of what we pitbdown. Or would it not be negative equity due to difference in sold price and amt left on mortgage  ( and the negative effect would be the deposit would have gone down ) 

You wouldn't be in negative equity.  Negative equity is where you owe more on the mortgage than you can sell the property for.

Thrugelmir

There's no need to start a new thread everytime you have a question.