Equity position of borrowers has improved, CML analysis shows

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The number of households in negative equity has fallen over the last 18 months by more than 100,000 (or 13%) since the first quarter of last year, from 827,000 to 719,000. This is according to the Council of Mortgage Lenders (CML). The CML's data shows that borrowers are collectively continuing to hold large amounts of unmortgaged equity in housing, despite modest falls in house prices across the UK.

The amount of unmortgaged housing equity held by borrowers remains broadly unchanged since last year at around £800 billion. This level of equity, compared to outstanding mortgage debt, equates to an average loan-to-value ratio of 56%. House prices remain some way off the peak, which has reduced mortgage borrowers housing wealth to £1,850 billion - down from around £2,100 billion in 2007.

November 2, 2012

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