Increasing number of mortgage holders 'facing negative equity'

Date:Thursday 26th March 2009
Author: Max Freedman

A rising number of mortgage holders in the UK are facing the prospect of negative equity, an expert has claimed.

Philip Barnsley, a solicitor with Higgs & Sons, said that the prospect of having a home loan greater than the value of the property on which it is secured is now a reality for some people, the Birmingham Post reports.

He stated: "During the boom times, people opt for a nice holiday and other material items, they put thousands of pounds on their mortgages, only to see property prices drop."

Mr Barnsley went on to say that anyone experiencing financial difficulties should take the situation in hand rather than attempt to "bury their heads in the sand".

Earlier this month, Ann Kinahan, director of a Citizens Advice Bureau in Sutton, said that there has been an increase in the number of consumers struggling to meet their monthly mortgage repayments since the beginning of the current economic downturn.