A quarter in negative equity
ONE in four mortgages in Yorkshire is in negative equity according to the Council of Mortgage Lenders.
This is higher than the national average, which is one in seven.
Research by the CML shows that 827,000 borrowers were in negative equity in the first quarter of 2011 – much the same number as in 2009, but nowhere near the peak of 1.6m households in the early 1990s. Almost all those in negative equity have bought since 2005. Nearly half of existing borrowers have outstanding mortgage debts equivalent to less than 70 per cent of the value of their home, while a further quarter have an equity cushion of between 10 per cent and 30 per cent of the property’s value.