A quar­ter in neg­a­tive equity

Yorkshire Post - Property - - PROPERTY -

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.

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