Falling house prices means over 20,000 facing negative equity

[Property Prices]

With the continued slide in house prices, figures from the Council of Mortgage Lenders suggest that there is likely to be an increase in the number of people whose mortgage is worth more than their property. In the 12 months to the end of March, over 23,200 homeowners who took out a 100% mortgage could [...]

More: Falling house prices means over 20,000 facing negative equity

[BarryM]

Massive price rises over the last 10 years mean most people are sitting on substantial equity. I can't see that this mirrors the situation in the early 90s.

[Becky]

I think personally there is a difference between now and the 90's.

The peer pressure alone has urged people to get into debt to conform.

The amount of loans and credit cards that has been offered by banks and building societies certainly hasnt helped. Then for all lending facilities to be stop and reconsolidation impossible! The home owner is left with no choice but to lend against thier home....hence the reason we are having problems.

[moneyman]

Yes. I think there is far more unsecured debts than 1990s, via credit cards and loans, which will cause the main problems rather than mortgage repayments.

Hopefully all of this will mean people will be more sensible and consider purchases they don't really need.

MM