R3 SCMP Negative Equity Feb 07 06

R3 SCMP Negative Equity Feb 07 06 - Tuesday, February 7,...

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Tuesday, February 7, 2006 South China Morning Post MORTGAGES Negative equity jangles nerves Yam blames rising interest rates as 21pc more homeowners fall outside the comfort zone in second quarterly increase MARIA CHAN and ANDY CHENG Almost 2,000 more households slipped into negative equity in the final three months of last year, a 21 per cent surge over the previous quarter to 11,000 mortgages with an aggregate value of $19 billion. It was the second consecutive quarterly increase and as lingering interest rate concerns put pressure on property prices, some lenders expect negative equity numbers to increase to 12,000 by the middle of the year - still a sharp drop from the 106,000 cases seen at the end of June 2003. The banking watchdog said that while homeowners might feel nervous, the asset quality of such mortgages was intact. Joseph Yam Chi-kwong, chief executive of the Hong Kong Monetary Authority, told lawmakers yesterday the number of mortgages in negative equity - where the amount
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This note was uploaded on 09/06/2010 for the course FINA FINA0805 taught by Professor Tse during the Spring '09 term at HKU.

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R3 SCMP Negative Equity Feb 07 06 - Tuesday, February 7,...

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