One in six 'prime' borrowers in negative equity

The ratings agency analysed loans representing almost 25% of all outstanding UK prime mortgages, with the ratings agency finding approximately 270,000 prime borrowers in negative equity. Out of 2.7 million prime mortgages, making up £263bn securitised through RMBS, Fitch said more than £39bn of loans were in negative equity. Ketan Thaker, director of the European RMBS team at Fitch, said while prime borrowers were unlikely to default solely because the value of their house was less than the outstanding balance of their mortgage, it expected default rates to be higher for borrowers in ne...