| Negative Amortisation |
A loan in which the outstanding principal balance goes up instead of down because the monthly payments are not large enough to cover the full amount of interest due. Also called deferred interest. |
| Negative Gearing |
An accounting term meaning when you are earning less money on your investment than the cost of maintaining it eg. Rental property. |
| Notice of Demand |
Issued by a solicitor to a mortgagor when default has occurred. The amount is usually the outstanding repayments and charges. This demand gives the mortgagor seven days to pay the default amount. Failure to do so may result in forced sale of the property. |
