Negative equity loans could revive property

NEGATIVE equity loans could kick-start the housing market at a time when 50,000 homeowners are expected to struggle to keep up mortgage payments.

Mortgage experts Karl Deeter and Iain Nash presented their research on the idea for “negative equity loans” to the Department of Finance’s expert group on mortgage arrears recently, which is made up of the main interest groups and representative bodies in finance and housing.

The loans, they said would allow people in negative equity to get out from under a large debt and service a smaller one while giving them freedom of mobility.