NI mortgage borrowers' negative equity warning from financial outsourcer HML.
08 September 2011
Financial outsourcer HML’s current analysis of the mortgage market has predicted that if house prices were to fall by 10% then nearly a third of all borrowers in Northern Ireland (93,134 or 30.4%) could be trapped by negative equity.
HML’s chief finance officer Neil Warman said: “This analysis show just how vulnerable UK households are to a continuing fall in house prices.
“Since their peak before the onset of the credit crunch, house prices have fallen by nearly 18% and, although there’s considerable variation in future forecasts, a number of analysts are saying we need to brace ourselves for further falls.
“HML’s data shows that even if house prices dip by just 2.5%, more than 1m UK households will have a mortgage debt that is larger than the value of their home.
“For many regions, negative equity could hinder the free movement of labour, especially among younger borrowers, which will inevitably contribute towards a delayed economic recovery.”
See full story at http://www.mortgageintroducer.com/mortgages/241230/5/Industry_in_depth/Negative_equity_threat_resurfaces.htm
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