Fitch Ratings says in a report published today that 15% of mortgage loans by value in UK prime RMBS master trust programmes are in negative equity. The agency expects that to increase to 34% if house prices fall in line with Fitch’s expectations of a 30% house price decline peak to trough, which would mean a further 14% fall from today’s values.
Northampton, Nottingham and Derby are the worst effected cities. Fitch’s analysis shows that the East Midlands has the highest proportion of loans in negative equity.
