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The Negative Equity Map Of Britain: How Half Of Homes In North East Are Worth Less Than Owners' Mortgages - Compared To Just 1% In The South

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Daily Mail 28/4/14

'

Negative equity has almost vanished in many parts of Britain, although thousands of homeowners in the North remain trapped with a property worth less than their mortgage.

In the latest sign that growth is taking hold in the economy, the number of first-time buyers caught in the negative equity trap after purchasing their home in 2007 has fallen from a high of 60 per cent in winter 2008, to just six per cent now.

The figures are not matched in the North however, where the number of homeowners with negative equity is falling at a much slower pace than anywhere else in the country.

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Across the UK: By region, the proportion of first time buyers who bought a property in 2007 in negative equity

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Up and down: This shows the current equity in a property that was bought with a 10 per cent deposit in 2007

According to data from the estate agency Countrywide and published in the Guardian, only 22,000 out of the 364,000 homes bought by first-time buyers in 2007 are still in the red.

The findings come ahead of official figures that are expected to show Britain's economic growth outstripped that in the U.S. and Europe in the first quarter of 2014.

'Despite the largest fall in house prices for 25 years, across most of the country the number of first-time buyers who bought at the peak of the market and still find themselves in negative equity is low, which is good news,' said financial services director at Countrywide Nigel Stockton.

'However, in parts of northern England the story is different. While the number of homeowners in negative equity is falling, it is doing so at a much slower pace than compared to the south of the country,' he added.

Value: The number of first-time buyers caught in the negative equity trap after purchasing their home in 2007 has fallen from a high of 60 per cent in winter 2008, to just six per cent now

Uneven: The fall in negative equity is not matched in the North, where the number of homeowners with negative equity is falling at a much slower pace than anywhere else in the country

Illustrating how the economic recovering has not yet reached parts of the North, more than half of the 17,300 in the North-East who bought their first home in 2007 remain in negative equity.

'Across most of the country the number of first-time buyers who bought at the peak of the market and still find themselves in negative equity is low, which is good news'

Nigel Stockton, Countrywide

In Yorkshire and Humber that figure is almost 30 per cent of 30,000 homeowners.

Those numbers are in stark contrast to London, where fewer than one per cent of people who bought their first home in 2007 have a property valued at less than their mortgage.

The fall in London is driven by soaring house prices, which rose by 0.6 per cent nationally and by 0.8 per cent in London in the first quarter of 2014.'

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I cant believe that over 50% of houses in NE England have a mortgage worth more then the property could sel for in the current market.

Theyve had 5 years of more or less free credit to pay off the debt, beside most people didnt buy in the 2002-2007 hyperinflation.

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I cant believe that over 50% of houses in NE England have a mortgage worth more then the property could sel for in the current market.

Theyve had 5 years of more or less free credit to pay off the debt, beside most people didnt buy in the 2002-2007 hyperinflation.

It needs overlapping with NR Together mortgages, I'll bet there will be a similar pattern.

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I cant believe that over 50% of houses in NE England have a mortgage worth more then the property could sel for in the current market.

Theyve had 5 years of more or less free credit to pay off the debt, beside most people didnt buy in the 2002-2007 hyperinflation.

I fully believe it. My wife is currently in Newcastle and has been looking at houses. More than once she' s come across people who won't negotiate as they are up to their necks in it with zero equity or even negative. Some of these morons bought their houses 12 years ago for half of their current sale price and borrowed all the equity. It's endemic. Don't forget this is ground zero liar loan Northern Rock territory.

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It needs overlapping with NR Together mortgages, I'll bet there will be a similar pattern.

Yes, they purchased it with negative equity and they are not paying down the loan......many could now be let property only in it for the income......negative, who cares when living in it long-term.....what it costs each month is more important than what it is worth.....owned by the lender it is their problem. ;)

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I fully believe too. Just looking at buying now. Sold prices for this 2br flat have gone from 130k in 2002, to 160k 2009 to 130k now. Similar units seem to have been selling at 250k in 2007! Anyone who bought after 2002 with 90% LTV is likely to have NE. Carnage is the only word for it. And still the property is over-priced. It will tank when govt subsidies are removed. It's not negative equity that would worry me. It's the potential riots and burning cities when the reality sinks in.

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Daily Mail 28/4/14

'

Negative equity has almost vanished in many parts of Britain, although thousands of homeowners in the North remain trapped with a property worth less than their mortgage.

Wouldn't be BTL by any chance would it? By numpties from SE with more cash than brains. (or borrowing power should I say)

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How are they determining NE? Are they basing it upon a 'market price' propped up by HTB?

If so, numbers posted are optimistic, at best.

I wondered that. How do they know what a) the liability is (overpay, interest only :) ) and b ) the valuation? Edited by Ash4781

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How are they determining NE? Are they basing it upon a 'market price' propped up by HTB?

If so, numbers posted are optimistic, at best.

Ditto.

Current market value is an illusion; debt isn't.

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Also (apologies for posting this again in quick succession) but

Here's some evidence of large price falls in the NE

This shows how value-less city centre flats in Newcastle have shown heavy depreciation since their peak several years ago. Price falls of between 30-60% in flats are typical over the last couple of years. Shows what happens when the illusion of demand is popped...

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Also (apologies for posting this again in quick succession) but

Here's some evidence of large price falls in the NE

This shows how value-less city centre flats in Newcastle have shown heavy depreciation since their peak several years ago. Price falls of between 30-60% in flats are typical over the last couple of years. Shows what happens when the illusion of demand is popped...

Also in Leeds

363, West Point, Wellington Street, Leeds, West Yorkshire LS1 4JU
£64,000 Flat, Leasehold 24 Jan 2014 £100,000 Flat, Leasehold 26 Dec 2006

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Wouldn't be BTL by any chance would it? By numpties from SE with more cash than brains. (or borrowing power should I say)

It would be interesting to see what %age of total mortgages in the NE were BTL.A lot of the big scammers were selling NE/NW properties to Southern 'investors'.

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Also (apologies for posting this again in quick succession) but

Here's some evidence of large price falls in the NE

This shows how value-less city centre flats in Newcastle have shown heavy depreciation since their peak several years ago. Price falls of between 30-60% in flats are typical over the last couple of years. Shows what happens when the illusion of demand is popped...

Some of those losses are eye watering and that's with ZUIRP,HTB1+2,FLS.

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