a quarter of homeowners in negative equity
Latest figures show a quarter of the UK's homeowners now owe more than their homes are worth. This figure is set to rise further if house prices continue to fall. It's predicted that almost 80% of people would be in negative equity should we witness the worst-case scenario housing slump of 40% as some have predicted.
The cause of this huge rise in negative equity is partially blamed on the lenders themselves. Lenders such as Northern Rock offered 100% mortgages and now has 32% of its mortgage book in negative equity.
Negative equity obviously posses huge prblems to some people. While in negative equity you can't sell your property, remortgage or take a secured loan. If you did want to sell your property then you would require a personal loan great enough to finance the difference between the mortgage amount owed and the property price.
If you want advice on negative equity or you are looking for a personal loan then look no further than Rainbow.
It doesnt surprise me at all this figure, with so many people not willing to put down deposits and borrowing 100% when house prices peak im surprised there isnt more people now in negative equity!
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