900,000 homeowners pushed into negative equity, says mortgage body

Falling house prices have pushed more than 900,000 homeowners into negative equity, according to the industry body representing mortgage lenders.

The latest data from the Council of Mortgage Lenders issued yesterday, reveals that the north-east of England has the highest proportion of people trapped in properties worth less than their mortgages.

There, one in 10 owner-occupiers are in negative equity. By contrast, in East Anglia and Scotland it is one in 100.

The council said that its latest national estimate compares with the more than 1.5 million homeowners left struggling under the weight of their home loans following the early 90s housing market crash.

Read more: 900,000 homeowners pushed into negative equity, says mortgage body

UK homeowners pay off £8bn of mortgage debt

British homeowners are benefiting from the cuts in interest rates by paying off their mortgages in record amounts, figures showed today.

A huge £8bn of mortgage debt was repaid in the fourth quarter of last year, according to Bank of England figures, as Britons with tracker mortgages responded to the sharp fall in interest repayments by pumping the spare cash into paying off their capital.

It follows figures earlier this week showing record inflows of savings into building societies and data last week showing a rebound in the proportion of income people are saving, as those in employment take the opportunity to pay off debt and prepare for leaner times as the country sinks into recession.

Read more: UK homeowners pay off £8bn of mortgage debt