A 10% fall in house prices would affect borrowers in the north of England the most, putting nearly one in 10 of them in negative equity against only 0.03% of borrowers in the south of the country, ratings agency Moody’s warned.
A 20% fall in prices would move 22% of northern borrowers into negative equity, but less than 1% of southern borrowers.
Price rises since the global financial crisis have not been evenly spread across the country, leaving borrowers in northern England, Scotland and Wales more at risk of negative equity in the event of a fall in prices.
