Home > News > Debt advice

Government warns about rising credit card debt Debt - the 12-month view Amount of `bad debt` written off reaches 16-year high Deeper into debt: middle-class poverty Debt taken on by individuals increased in January Debt Relief Order (DRO) rules may be changed Overdrafts: five million Britons `permanently` in debt Mortgage lending drops to decade low The cost of debt falls Two thirds hope to have cleared mortgage debt by 50 40% of people approaching retirement `saddled with debt` Repossession `may be best` for homeowners struggling with debt Bankruptcies in Scotland - the worst may be yet to come Good news for people with energy debts US: new law provides debt-free date More debt taken on than repaid in December Savings rise as consumers pay down debt Household debt `could trigger another downturn` More families could fall into debt with energy companies Recession ends

Mortgage debt often greater than house value

01/07/2009

According to the latest findings from global rating agency Fitch, almost 1 in 6 `prime` mortgages in the UK are in negative equity - where the homeowner`s mortgage debt is greater than the value of their home - The Times reports.

The report suggests that this figure could rise to around 1 in 3 over the next year if house prices continue to fall in line with the agency`s expectations.

A Director at Fitch, Ketan Thaker, commented that `although prime borrowers were unlikely to default on mortgage payments purely because they were in negative equity, it reduced the options available to those who were struggling with debt.`

A debt specialist for Debt Advisers Direct said: "Negative equity can be a real problem for some people - if they are looking to sell their property or remortgage, for example.

"However, negative equity needn`t be an immediate concern for those who don`t plan to move or remortgage, as long as they are able to keep on making their mortgage payments."

---

Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

Government warns about rising credit card debt 05/03/2010 - The latest figures from the Bank of England (BoE) have Debt - the 12-month view 04/03/2010 - In January, UK citizens - between them - borrowed £500 Amount of `bad debt` written off reaches 16-year high 03/03/2010 - The latest figures from the Bank of England (BoE) suggest Deeper into debt: middle-class poverty 02/03/2010 - The recession has also affected a lot of people with