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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`

Negative equity `concerning UK mortgage holders`

04/02/2009

Negative equity is a concern for one-quarter of British mortgage holders, new research has indicated.

According to figures compiled by Fairinvestment.co.uk, many homeowners are becoming worried about the declining value of their homes - especially those which were purchased at the height of the property boom.

Those who had purchased property as an investment also expressed worry, as three per cent had intended to use equity release from their home to finance their retirement and a further three per cent planned to use the value of their property as a pension.

Sharon Bratley, chartered financial planner at Fairinvestment.co.uk, said that mortgage holders are not likely to consider using their property for equity release until the loan is paid off, which means that negative equity is not a major concern.

"What it will mean, however, is that the reducing value of the property consequently leads to a reduced amount that can be borrowed," she explained.

Some 30,000 mortgage customers at HSBC are set to receive a letter from the bank, advising them to take advantage of falling interest rates by making overpayments on their loans.

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