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Mortgage debt: homeowners worried about negative equity

03/02/2009

A survey has shown that around 25% of homeowners are worried about falling into negative equity – carrying mortgage debt that’s worth more than the property itself.

With property prices dropping, many people who bought their properties towards the end of the house price boom are finding they have little or no equity in their property.

As reported on www.londonstockexchange.com, a Fairinvestment survey revealed that a quarter of mortgage holders now ‘harbour genuine concerns about the prospect of falling into negative equity’.

11% of those households had bought their home at the height of the boom and are ‘becoming increasingly worried that its value may now fall below the outstanding amount on their mortgage’.

“Mortgage debt can be particularly intimidating,” said a spokesperson for Debt Advisers Direct, “due to the size of the debt and the sheer length of the repayment period. Anyone worried about negative equity – or any other mortgage-related matter – should seek debt advice without delay.”

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

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