250,000 mortgage holders fall into negative equity

It looks as though things are starting to look even bleaker for mortgage holders, as news has come to light that over 250,000 mortgage holders fall into negative equity. There are also reports that more than a million home owners with a mortgage will be at risk as the housing market starts to enter a crisis.

City Bank has been saying that the house prices have dropped as much as 7 percent in some areas; this means that some home owners owe more on their mortgage than the value of their homes. It seems that we are now entering the same housing crisis as we had back in the early 1990’s. More than 2 million homeowners were in negative equity back then, and it is now feared that we could see a repeat of this.

There are no signs that house prices will stop falling, and if it keeps on then many more homeowners will enter negative equity.

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