Sunday, 2 November 2008

Negative Vibes

More than a million homeowners will fall into negative equity as the housing market slump intensifies, the Bank of England has warned. The continuing decline in house prices means that one in ten mortgage holders - 1.2 million people - are likely find themselves trapped in a home worth less than the loan they took out to pay for it.
Around 500,000 homeowners are already in negative equity following a drop in house prices of almost 15 per cent from last summer's peak, the Bank's figures indicate. However, it is the further falls in prices to come that will push another 700,000 of Britain's 11.7 million mortgage holders into negative territory.
At least I know I’n not alone. Fat consolation though that may be.

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