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More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

Mortgage debt often greater than house value

01/07/2009

According to the latest findings from global rating agency Fitch, almost 1 in 6 `prime` mortgages in the UK are in negative equity - where the homeowner`s mortgage debt is greater than the value of their home - The Times reports.

The report suggests that this figure could rise to around 1 in 3 over the next year if house prices continue to fall in line with the agency`s expectations.

A Director at Fitch, Ketan Thaker, commented that `although prime borrowers were unlikely to default on mortgage payments purely because they were in negative equity, it reduced the options available to those who were struggling with debt.`

A debt specialist for Debt Advisers Direct said: "Negative equity can be a real problem for some people - if they are looking to sell their property or remortgage, for example.

"However, negative equity needn`t be an immediate concern for those who don`t plan to move or remortgage, as long as they are able to keep on making their mortgage payments."

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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).

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according