Irresponsible Lending In The UK Could Lead To Return Of ‘Negative Equity’

TSB has reduced mortgage lending to first-time buyers, especially in London, amid growing concerns that many homeowners without significant equity in their homes could soon find themselves in ‘negative equity’ as a result of falling house prices, particularly in the capital. In what may be an eerie echo of the start of the financial crisis, TSB’s chief executive Paul Pester has warned that many lenders in the UK are being reckless by providing property buyers with cheap loans that they may not be able to afford, especially when interest rates eventually rise, at a time when home prices are starting to look increasingly vulnerable. UK house prices fell for the second month in a row during April, according to the Nationwide. Read more on Property Investor Today.