One-in-five mortgage borrowers to be affected by negative equity

According to Bank of England estimates, negative equity now affects roughly 3% of mortgage borrowers, or just over 350,000 households. Yet, if we are right and house prices still have at least another 25% to drop from here, that figure will rise sharply. By early 2010, we estimate that one-infive mortgaged properties, or 2.5 million households will have been affected by negative equity.

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