Homeowners in northern England 'most vulnerable to negative equity'

A 10% drop in house prices would see one in 10 borrowers fall into negative equity, warns Moody’s, as Bank of England revises market forecast

A 10% fall in house prices would put almost one in 10 borrowers in the north of England in negative equity, credit ratings agency Moody’s has warned, as the Bank of England said it was adjusting down its market forecasts in the wake of the Brexit vote.

The agency said there was a “persistent disparity in the UK”, with northern borrowers most vulnerable to price fluctuations. A 20% fall in prices would mean 22% of them owed their mortgage lender more than their property was worth, while less than 1% of borrowers in the south would be in the same position.