Generally speaking, the more of your mortgage you’ve paid off, the more secure you’ll be if your house price falls.
Few people expect prices to fall by more than 20 per cent, so anyone who has already paid off, say, 15 per cent of the house value should not be affected.
Those who live in prime areas – the Kensington and Chelseas of this world – are less vulnerable. The value of top UK homes is more reliant on the state of the financial markets, and on the size of bonuses received by those who work in the City. Prices here could still drop if there is a big financial recession.