Mortgage holders who find themselves in negative equity should not panic and instead try to weather the storm, one expert has claimed.
Paul Holmes, operations director at Firstrung, explained that while a fall in house prices might mean that some properties are less worth than the mortgage on them, this should not be the case in the long-term.
He said: "Perhaps a £20,000 dips in year three and four of your mortgage is more than outweighed by the fact that in year ten to 15 years of your mortgage you will be in positive territory and you can see a finishing line for paying off your original debt ."
As long as people can afford to make their monthly mortgage payment, then negative equity is not something that people should worry about, he added.
Recent research conducted by Morgan Stanley and reported in the Times, predicts that 1.2 million mortgage holders are facing the prospect of negative equity.
Mortgage holders told to keep calm over negative equity
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Mortgage holders told to keep calm over negative equity
Fri, 16 May 2008
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