Morgan Stanley chief UK economist has warned that house prices could drop by as much as 10% over the next year. This would mean that buyers who bought this year with 95% mortgages could face the prospect of negative equity - where the amount they owe on their house is greater than the value of the property.
And the pain won't end there. He also predicted further price drops in 2009. These predictions are caused by the mixture of interest rate rises and the credit problems with the banking system, which have combined to make mortgage rates more expensive and mortgages more difficult to come by.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment