View more on these topics

Million in negative equity

Nearly a million mortgage borrowers have fallen into negative equity, the Council of Mortgage Lenders has revealed.

Its research estimates that 900,000 homeowners have some degree of negative equity but around two-thirds face only modest shortfalls of less than 10 per cent. This equates to around £6,000 for first-time buyers with negative equity and £8,000 for other homebuyers.

The CML says at the depth of the last housing market recession in 1993, 1.5 million households were estimated to be in negative equity.

Head of research Bob Pannell says: “Most borrowers are likely to adopt a strategy of sitting tight and building up savings or overpaying on the mortgage.”


Analysis: Is this the start of a deflationary spiral?

In January and February, the word “deflation” was much spoken in the corridors of the City. With stockmarkets hovering around historical lows and sterling still plunging, some feared Britain could go the way of Japan in the 1990s.Today deflation arrived, as figures revealed the retail prices index fell by 0.4% in March against the same […]

Manager focus: George Lee

Although food prices have fallen from their peaks in last year, major food grain prices are still above average. The World Bank reports that although international food prices have fallen, local food prices in many countries have not fallen. Maize is 50% more expensive than its average prices between 2003 and 2006, while rice prices […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm