Average LTV is less than 60%

Generali

http://www.cml.org.uk/cml/media/press/2992

Research published today by the CML shows that, while the amount of unmortgaged housing wealth held by individual borrowers varies enormously, the aggregate loan-to-value ratio on mortgaged property in the UK is less than 60%.

HAMISH_MCTAVISH

Nearly half of existing borrowers have outstanding mortgage debts equivalent to less than 70% of the value of their home. So very roughly 6 million borrowers.

A further quarter have an equity cushion of between 10% and 30% of the property's value. So roughly 3 million borrowers.

And of the remaining 3 million, 860,000 are in negative equity, and around 2.1 million have between 0% and 10% equity.

So falls of just 10% would put another 2 million into negative equity, and cause a further 3 million to drop an LTV bracket for mortgage purposes, costing them a fortune.

It's no wonder the housing market supply plummeted so rapidly last time prices fell just 10% below today's levels!!!