Negative equity to affect 125,000 owners

HALF of homeowners who purchased in the last three years will be left owing more than their houses are worth.

In that time nearly 125,000 people borrowed more than 70% of the value of property. It is predicted house prices will fall by 30% from their peak by the end of next year.

Financial analyst Bill Hobbs said that in that time frame the number of 90%-plus mortgages trebled as people chased escalated house prices.