Saturday, February 2, 2008

The return of negative equity: Thousands at risk of owing more on homes than they are worth

Daily Mail

"Thousands of families are at risk of plunging into negative equity if house prices fall by even a small amount, experts warned yesterday.

Those who took out huge mortgages while property prices were soaring have been left exposed by the market downturn.

Credit ratings agency Experian have drawn up a map showing which areas of the country are most at risk from a fall in prices.

It found that in some parts of Britain, the average mortgage debt is more than 90 per cent of local property prices.

This leaves owners vulnerable to negative equity - where the amount owed on the home is more than it is worth..."

2 comments:

Panos Konstantinidis said...

The come of age.

I don't feel pity about them, they made a decision to buy, we made a decision to rent.

The Apprentice said...

Neither do I, but... this sad story has many legs.