1.5 million ‘facing mortgage difficulty’
16 January 2009
A consumer group has warned that 1.5 million homeowners with big mortgages could face “disaster” if, as expected, house prices fall by a further 15% this year.
Which? said that 1.5 million mortgage holders could find themselves either in negative equity or with mortgages equivalent to more than 90% of the value of their property.
Either of these situations could make moving house or remortgaging very difficult, if not impossible – especially in today’s market, as most lenders now require a deposit of at least 20% or so on any new mortgage.
A mortgage expert for Think Money said: “Negative equity continues to be a worry for many homeowners, especially those who put down relatively small deposits on mortgages taken out in recent years.
“Anyone who is unsure about their situation should speak to a professional mortgage adviser for advice.”
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Tags: homeowners, mortgages, big mortgages, house prices, negative equity, deposit, 90%, remortgage, remortgaging, house prices, house value
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