News Tag: negative equity
December 14, 2009
The Bank of England's quarterly report covering the autumn of 2009 shows householders' disposable incomes after tax, housing costs, loan payments and utility bills having fallen by an average £100 per month over the past year.
Manual workers, many of whom have been hit by reduced working hours, saw their disposable incomes depleted by between £50 and £100 a month, while non-manual ...
Household disposable incomes tumble by £100pm
by Gill Montia
August 3, 2009
The National Housing Federation (NHF) has produced an alarming forecast for the housing market in England.
The body, which represents not-for-profit housing associations, is predicting "substantial" price falls in 2009 and 2010 followed by a rise of 20% by 2014.
According to research undertaken by Oxford Economics for NHF, house prices in England will fall by 12.2% this year and ...
“Substantial” house price falls this year and next
by Gill Montia
July 9, 2009
In a surprise move, Nationwide Building Society is offering a new mortgage with a loan-to-value (LTV) ratio of 125%.
The deal is only available to existing customers who are in negative equity and need to move house. Even then borrowers will be selected very carefully.
The building society says it can provide a loan for 95% of the value of a new home at a ...
Nationwide offers 125% mortgage
by Gill Montia
July 1, 2009
Only six families have been helped by the government's Mortgage Rescue Scheme, housing minister John Healey admitted yesterday.
Set up in January, the £200 million initiative aims to help vulnerable families at risk of having their home repossessed.
Participants in the scheme can choose to have their home bought by the local authorities then rented back to them, or to take out a ...
Mortgage Rescue Scheme saves six homes
by David Masters
June 24, 2009
Northern Rock is leading the field in "prime" mortgages that have fallen into negative equity.
A new report from ratings agency, Fitch, reveals that almost one in six households at the upper end of the UK property market have home loans that exceed the value of their properties.
In the case of the state-owned Northern Rock, 32% of its Granite prime-loan book is in ...
Negative equity afflicts “prime” homeowners
by Gill Montia
June 12, 2009
In its latest Quarterly Bulletin, the Bank of England estimates that between 700,000 and 1.1 million UK homeowners are in negative equity.
Negative equity occurs when the market value of a house is below the outstanding mortgage.
With house prices falling by around 20% between autumn 2007 and spring 2009, the Bank estimates that between 7% and 11% of UK ...
Up to 11% of UK households in negative equity
by Gill Montia
April 20, 2009
A member of the Bank of England's Monetary Policy Committee has taken up the cause of would-be homeowners who need to borrow 100% of the value of a home.
Kate Barker, who is also a Government adviser on the UK housing market, has publicly opposed Prime Minister Gordon Brown in his suggestion that such loans may be banned.
High loan-to-value mortgages have played ...
Government housing adviser defends 100% mortgages
by Gill Montia
April 17, 2009
The Council of Mortgage Lenders (CML) has published new research on negative equity in the UK housing market.
The Council points out that during the 1993 market downturn, 1.5 million households or more were estimated to be in negative equity.
Most eventually recovered their positions and a similar outcome is expected for today's homeowners with mortgages larger than the value of their ...
CML estimate puts 900,000 in negative equity
by Gill Montia
March 20, 2009
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 half of buy-to-let borrowers with ...
FSA warns 2.5m could face negative equity
by Gill Montia
February 27, 2009
Research involving 60,000 UK homeowners has led to claims that almost four million households are already in, or close to, negative equity.
In terms of UK mortgage holders, the figure equates to one in three, which is double the number seen during the housing market downturn of the 1990s.
Research firm, GfK NOP, found that homeowners aged between 25 and 34 who have ...
Negative equity haunts four million homeowners
by Gill Montia
February 11, 2009
One in five homeowners could find themselves in negative equity as the recession tightens its stranglehold, the Financial Services Authority (FSA) has warned.
House prices could potentially drop by as much as 30% compared to 2007 levels, the FSA said, leaving 2.5 million mortgage holders owing more than the value of their house. This is around 21% of people with ...
One in five homeowners face negative equity
by David Masters
January 30, 2009
The worst housing market crash since records began has left an estimated 1.2 million households in negative equity, according to Nationwide Building Society.
The average house price has dropped from £186,050 at peak in October 2007 to £150,500 today, a fall of over £35,000.
This month alone, prices fell 1.3%, or £2,500.
At current house prices, anyone who bought their home since 2003 paid more than ...
Millions in negative equity
by David Masters
January 22, 2009
The Financial Services Authority (FSA) has reported that the number of home repossessions in the UK rose to 13,161 in the third quarter of 2008.
The figure had increased from 11,054 during the second quarter of last year and was up 92% on the same period of 2007.
In addition, the regulator found that the number of households with mortgage arrears rose ...
FSA reports rise in repossessions and arrears
by Gill Montia
October 20, 2008
The downturn in the property market is forcing 60,000 homeowners a month into negative equity.
According to the credit rating agency, Standard & Poor's, research suggests that 335,000 homes will be worth less than their mortgages by the end of October, a rise of 260,000 over four months.
If the trend continues, the number of homes with mortgages above their value ...
60,000 homeowners a month enter negative equity
by Gill Montia
August 5, 2008
As the housing market downturn continues, Northern Rock customers are more likely to be facing negative equity than borrowers with other UK lenders.
While the number of people in arrears with their mortgage repayments is rising across the banking sector, Northern Rock is more exposed than most of its competitors because prior to the credit crisis, it offered home ...
Negative equity haunts one in five Northern Rock borrowers
by Gill Montia
July 18, 2008
Insurance company, AXA, is predicting that Middle Britain will be hardest hit by the downturn in the housing market, in terms of property values.
Middle Britain is not necessarily Middle Class and according to AXA's Financial Task Force only 20% of all UK households fall into the category.
The insurer recently defined the term as families that earn an average of ...
Middle Britian hardest hit by house price falls
by Gill Montia
July 7, 2008
A survey conducted by CACI for the Daily Telegraph indicates that one in eight people who have borrowed money to buy their homes since the beginning of last year could be in negative equity.
According to the research, almost 145,000 homeowners now have mortgages that exceed the value of their properties.
In addition, CACI is predicting that 360,000 borrowers could be in negative equity ...
Negative equity entraps 145,000 homeowners
by Gill Montia
June 10, 2008
The Council of Mortgage Lenders (CML) estimates that up to 23,000 of the homeowners who borrowed 100% of the purchase price of their properties in the 12 months to the end of March, could face negative equity.
As property prices continue to fall (the Halifax recorded a 2.4% drop in May), the number of people whose mortgages outsize the value of their ...
Negative equity looms for 23,000 homeowners
by Gill Montia
June 3, 2008
Citigroup estimates that a quarter of a million UK homeowners are now in negative equity and that the number will rise to over one million by the end of 2009.
This would mean that nearly one in 12 property owners with a mortgage would be affected.
According to the US investment bank, UK property prices have fallen 7% since the autumn of ...
One million households face negative equity
by Gill Montia
May 1, 2008
The Bank of England's Financial Stability report, published today, is upbeat on the credit crisis suggesting that banks' losses may be only around half of the $400 billion (£202 billion) estimated, and that confidence should now be returning to the money markets.
However, the report's stance on the UK housing market is not so encouraging because it warns that ...
House price forecasts remain gloomy as credit crisis brightens
by Gill Montia
