The typical British homeowner will avoid negative equity and the debt management problems associated with it, according to a report from GE Money Home Lending.
Most property owners have benefited considerably from the sharp rises in house values and are likely to have an “equity cushion” that will effectively protect their assets in the current climate.
Even for those who took on a mortgage loan without paying a deposit in recent years should have seen enough of a rise in property prices to keep them safe from negative equity.
“Over the past decade homeownership has delivered fantastic returns for many borrowers and we would need to see unprecedented falls in property prices for the average homeowner to be severely impacted,” said Gerry Bell, head of mortgage marketing forGE Money Home Lending.
According to the latest figures from Credit Action, including mortgage arrears, the typical British household has a debt management burden worth almost £58,000.
By Dan Mather