A new report predicts that 1.7m mortgage payers could face negative equity within the next year, as house prices continue to slide.

Credit ratings agency Standard & Poor (S&P) predict that prices will fall a further 17% over the next year, resulting in 14% of UK mortgage holders finding that their home was worth less than their outstanding mortgage balance.

The current number of households in negative equity is around 70,000 or around 0.7% of homeowners.

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