Homeowners facing negative equity risk
Homeowners facing negative equity risk
Wednesday 11th February 2009
According to a survey of 2,000 property owners by fairinvestment.co.uk, 21 per cent of mortgage holders borrowed more than 90 per cent of their home's value when they made the purchase.
Citing figures from the Financial Services Authority, the website reveals that over two million British homeowners will be in negative equity if house prices fall by 30 per cent from their level at the end of 2007.
Sharon Bratley, chartered financial planner at fairinvestment.co.uk, commented: "There are a number of mortgage holders out there who did borrow more than 90 per cent of their home's value.
"These homeowners could now be at risk of negative equity as house prices continue to come down, particularly if they bought their house within the last three years."
A recent report from Grant Thornton revealed that 69.3 per cent of all IVA applications received in the second half of 2008 were made by property owners.
News article brought to you by SimpleIVA - UK IVA specialists.
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