Banks should show a “sympathetic attitude” to mortgage payers who are struggling with negative equity, according to NI Conservatives’ spokesman, Mark Brotherston.
“The figures suggest that 41% of mortgage-holders in Northern Ireland are in negative equity, which means that their borrowings exceed the value of their home”, Mark explained. “That’s a worrying situation, because the figure UK-wide is about 8%. It means people could experience difficulties with repayments and many home-owners are understandably concerned about the prospects of selling their property.”
“The banks played a leading role, along with the Labour government, in creating a ‘housing bubble’, which contributed to the crash and the recession from which we are only now starting to recover. It’s important that they show a sympathetic attitude, where mortgage holders are struggling to make substantial repayments that may not reflect the current value of their homes. We need to see engagement between banks and politicians, to make sure that Northern Ireland doesn’t move towards a repayments crisis.”
“It’s also important to emphasise that mortgage holders shouldn’t panic. The housing market is improving and prices are recovering, as Conservative policies help the UK economy. Negative equity, while it may be a worry, only usually becomes a serious issue when an owner tries to sell their property. With a responsible attitude by banks and an attentive approach from the executive, issues around mortgages in Northern Ireland can be kept under control.”