NI is region with most negative equity

New figures from the Council of Mortgage Lenders show that 69,000 houses in Northern Ireland are in negative equity, making it the worst effected region of the UK.

The Northern Ireland property market has come down from an explosive boom that ended in 2007, property prices at that time having increased on an almost daily basis. However, home buyers who purchased during the boom have witnessed the value of their house drop dramatically in the past 5 years - with the average value of a property in Northern Ireland dropping from £234,000 at the height of the boom to £139,000 this year. Add to that, that 100 per cent mortgages were readily available during the boom, and it is little surprise that the problem with negative equity is so severe.

Negative equity describes when the mortgage debt on a property is higher than its' actual value. The difficulty caused by negative equity is that the owner will be unable to remortgage or sell the property until the value once again exceeds the mortgage debt. For some this means they are locked into a mortgage product with unfavourable terms, and for others, it can mean they are unable to relocate for a new job or other commitment.

If you are planning to purchase, sell or remortgage a house in Northern Ireland and need a property solicitor to handle the conveyancing process for you, contact Wilson Nesbitt solicitors in Northern Ireland by calling 0800 840 9290 .