'Weather the storm' of negative equity

First-time buyers who find themselves with negative equity should try and "weather the storm", it has been advised.

People should not panic, if they find themselves with negative equity, according to Paul Holmes, director of FirstRung.

Mr Holmes commented that eventually the market place will even out and homeowners will once again find themselves in "positive territory".

He commented that although dips may be experienced in the next few years, gains may be made later in the mortgage's life span.

"[If] you find yourself in a bit of negative equity weather the storm if you can," he said.

He added that in today's market place there may be no alternative, since homeowners would not be able to recover their losses at this stage.

According to Morgan Stanley, some 1.2 million people will be in negative equity - a level that has not been reached since the 1990s. It also predicts that house prices will fall by 15 per cent in the next two years.

When settling in a property be sure to acquire a self-storage system that meets your needs.


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