Are you hit by evaporating equity?MoneySaving Poll Results

Souk
Poll Started 24 Nov 2008:

Are you hit by evaporating equity?

The loan-to-value ratio of your house - the proportion of your houseís value youíre borrowing - is a key factor in getting a mortgage. Yet thereís a double whammy hitting this across the nation, that I call the evaporating equity trap.

Problem 1. House Prices. House prices have dropped 15% on average, meaning your mortgage is now likely to be a bigger proportion of your homeís value.

Problem 2. The Credit Crunch. Lenders are now much more cautious, meaning you need an LTV of 75% or LESS to get a decent deal; it used to be 90%.

What's the current LTV of your mortgage?

To work it out, DIVIDE your OUTSTANDING MORTGAGE by the estimated CURRENT value of your HOME (ie taking house price falls into account)

Results

A. LTV under 20%.712 votes (12 %)
B. LTV 21-40%.789 votes (14 %)
C. LTV 41-60%.902 votes (16 %)
D. LTV 61-75%.600 votes (11 %)
E. LTV 76-90%.525 votes (9 %)
F. LTV 90-100%.421 votes (7 %)
G. LTV 100%+ (negative equity).265 votes (5 %)
H. Donít have a mortgage.728 votes (13 %)
I. Paid off my mortgage.758 votes (13 %)

                   5,700 votes received.

We try to use technology to limit voting to one per person. Occasionally, this may erroneously block a few people's votes (eg, from shared offices). Apologies for that.