Home > News > Mortgage and Remortgage

Struggling mortgage holders `should seek advice` Remortgage enquiries `rise in June` Mortgage approvals `up in June` UK mortgage market remains weak, CML says Consumers `should avoid lying on mortgage applications` BoE releases Trends in Lending report Brits `prioritising debt repayment` "Sensible lending" needs to be restored for home buying Many households `to miss mortgage payments` Homeowners `increasingly paying off mortgage debt` Booklet produced for those facing mortgage repayment problems Local authority defends decision to offer 100% mortgages Mortgage lending levels `still low` CML welcomes campaign on repossessions Consumers `increasingly offsetting savings against mortgages` Banks `should be encouraged to provide more mortgages` Younger and richer people `benefiting more from mortgage reductions` Bank of England cuts base rate Negative equity `concerning UK mortgage holders` Interest rate cuts `were not anticipated by consumers`

A million homeowners may face negative equity

25/06/2008

Homeowners who have recently agreed high loan-to-value (LTV) mortgages may soon be confronted with negative equity, according to a new report.

If house prices fall 15 per cent, a million people may be in negative equity, said Professor David Miles, managing director of Morgan Stanley Research.

However, he commented the situation would be "not apocalyptic".

Speaking at the National Institute of Economic and Social Research (NIESR) Westminster Economics Forum on Monday, Professor Miles said "there is not a terrible condition" if monthly mortgage payments are affordable, MyFinances.co.uk reported.

"The majority of people will just be in negative equity," he commented.

Professor Miles explained that house prices were often dependent on expectation, thus an expectation of a fall in house prices may create one.

Last week the Council of Mortgage Lenders (CML) claimed the situation was "not as gloomy" as many think. It stated "the vast majority of borrowers are in a strong position" as employment levels are currently high.

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