800,000 households in negative equity

More than 800,000 households are currently in negative equity, this represents 7.3% of all homes with a mortgage and according to a new report the number could rise significantly if house prices drop further. Negative equity happens when the loan secured on a property is greater than the value. The number of homes in negative equity has increased over recent years due to the fall in house prices combined with lenders historically offering mortgages at high loan to values, sometimes over 100% of the value of the house. Worrying data The new figures have been produced by mortgage administrators Homeloan Management Limited (HML) ...