The Financial Services Authority (FSA) has warned that if during this year house prices complete a 30% fall from their 2007 peak, around 2.5 million mortgage borrowers could end up in negative equity.Around 500,000 of the total would be buy-to-let investors and the remainder homeowners.Such an outcome would leave one in four mortgaged households and [...]
I think there are now many people in the negative equity trap. Many people still don't realise this, thinking that there properties are worth more than they actually are. I've spoken to several people who have tried to sell their properties recently and have had a real shock as to the real value of their asset.
FSA warns 2.5m could face negative equity
