Whether you've bought or sold a property before or not, there's lots of lingo to get your head around. Hopefully my explanations of these terms will help you.
This is when you owe more money to the lender than the actual market value of your property
Related: Why can you get such different values for the same property?, How do I value my home?, What is your home worth?
This is when the amount of rent that a property brings in is less than the cost of the mortgage. Bear in mind tax must be deducted from the income before a loan can be repaid.
Just as it sounds, it is a term used to refer to people with a poor credit history. This may include but is not limited to, things such as county court judgments (CCJ’s), bankruptcy, mortgage arrears, Individual Voluntary Agreements (IVA’s) and credit card or other borrowing arrears or defaults.
