Approximately 900,000 people who have home
Data unveiled by the Council of
However, the body noted that negative equity does not always mean that borrowers will have problems with
It explained that arrears are more likely to be caused by a rise in spending commitments or a drop in income.
CML spokesperson Bob Pannell remarked: “Negative equity will contribute to subdued property turnover, but otherwise should have few adverse effects for the majority of households.”
He said that those with a “good payment track record” should be able to reach agreements with lenders if they do have a change in circumstances.
It comes after the CML stated that the value of homeowner