Will I be in negative equity in 2012?

Negative equity "four times more likely in north than south"

New research reveals that negative equity - when a homeowner owes more than their home is worth - is almost four times as likely to occur in the north of England than the south.
Divorcing into negative equity?

A reader from London is going through a divorce but she is facing negative equity.

A reader is worried about the long-term prospects of the property market.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes him through the problem and what it means to his finances.

Mr Clarkson from Kent asks:

I have a fixed mortgage for five years which expires in 2012.

If the housing market is worse at that time and my house is in negative equity, how will i go about re-mortgaging?

Tony replies:

Unfortunately, in the current climate it is hard to predict what will happen next week, let alone in five years' time.

I suspect that we will all have much greater problems if the housing market has worsened between now and 2012.

I would suggest that the best way to avoid negative equity in five years time is to repay as much of your mortgage as possible between now and then.

If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section. ">

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority

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