Friday, Feb 27, 2009
New figures suggest negative equity is double what was previously thought
Telegraph: Nearly 4 million home owners are already in negative equity
The calculation is the most gloomy yet, and shows how the property crash has caused serious financial problems for an increasing number of people.
Previous estimates suggested that, at most, two million home owners were suffering from the predicament.
Posted by louise @ 11:44 AM (419 views) Add Comment
5 Comments
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1. mark wadsworth said...
The figure must be exaggerated.
We know that prices are now down to where they were 5 years ago.
So 3.8 million is only believable if you assume that everybody who bought in the last five years (let's say 750,000 a year) took out a 100% interest only mortgage and no other redemptions or repayments or MEW-remortgaging, which quite simply isn't true.
2. alan said...
Most of the lads in the football team (Essex) are using the lower mortgage rates to pay off their 95% mortgages as fast as possible.
Negative equity no - however, most are not far above that state for the moment.
3. Backingermany said...
Don't know whether the figures are true or not but they certainly could be as many a lavish lifestyle has been financed through REMORTGAGING when the going was good. In fact, homeowners were constantly encouraged to "take equity" out of their "investments"....
4. need-a-crash said...
@1. Mark - But what about all the people who bought >5yrs ago but MEW'ed up to 2004-7 values, could they when combined with people who bought in the last 5yrs not add up to 3.8m people?
5. 51ck-6-51x said...
If someone is in negative equity then can they really>/i> be called a home owner? ;p