Making regular mortgage payments
This’ll help ensure a steady increase in your level of ownership in the property. Overpaying on your mortgage payment can also reduce the overall cost of your mortgage too as this will reduce the amount of time you have your mortgage and your intrest fees will be smaller.
Similarly, avoid interest only mortgages, these do not help you increase your equity share in your home. They only cover the interest charges per month on the mortgage. They can be attractive to some house buyers for their lower rates, but they will not help you increase your equity.
Learn more about our mortgage and finance advice >
Stay informed about market trends and be cautious about borrowing against the property.
The more you’re aware of the market, the better choices you can make. And if you avoid borrowing against the property, it’ll keep your percentage of ownership from further decreasing.
Make sure you do your research when buying your property. They are large financial descisions and they should not be taken lightly. Research the property values in the area and make sure you are paying a fair price. This will likely reduce the chances of falling into negative equity in the future.
Could you easily add to the value of the house? Would adding an extension or renovating add value to the house? If this is the case, you will have more options to minimise the risk of falling into negative equity.