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Fitch highlights negative equity

A report by credit agency Fitch Ratings will today say that one in 10 borrowers with excellent credit ratings are trapped in negative equity, owing more on their mortgage than the value of their homes. The agency will also forecast a peak-to-trough fall in house prices of up to 35 per cent. The report, which is based on loan information from 2.7m borrowers, found the highest concentration of negative equity was in Northampton, where 17 per cent of borrowers were under water, while Northern Rock and Bradford & Bingley are among the lenders with the highest number of borrowers in this position.