Almost a million mortgage holders in negative equity

Fri, 17 Apr 2009

According to recent mortgage market data from the Council of Mortgage Lenders, as many as 900,000 homeowners have been pushed into negative equity . Negative equity occurs when a borrower sees the value of their property fall, increasing their loan to value rate until the loan is worth more than the house.

The proportion of mortgage borrowers in negative equity varies considerably throughout the country, however. Some one in 10 owner-occupiers are in negative equity in the North East, for instance, whilst in East Anglia the figure is more like one in every 100.

The CML blamed the significant downturn in the housing market for pushing borrowers into negative equity. Furthermore, reports from alternate sources put the figures far higher. Those with mortgage loans who are facing negative equity will now be looking to weather this tough economic period.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.