Long term negative equity possible, reports North London Mortgage Advisers, London Mortgage Advice Thursday, 2nd September 2010

According to new figures out recently, mortgage holders who bought at the height of the property boom face another four years of negative equity before they recover what they paid.

Borrowers who bought a property at the height of the market will have to wait until 2014 before the price of their home is higher than the value of their mortgage, The National Housing Federation (NHF) has claimed.

On average people who bought a home pai £216,800 for a property in 2007, the NHF said.

And these homebuyers will have to wait until 2014 for a recovery, when average prices will reach £226,900.

"There's a very real risk that an entire generation will be locked out of the housing market for the foreseeable future and people will increasingly look to buy or rent an affordable home instead." David Orr, chief executive of the NHF, warned.

In the light of these figures it amy be sensible to secure a fixed-rate mortgage while base rates are still low.

Whilst rates which are fixed historically have not offered the cheapest rates, they may be a good alternative as the economic picture is not predictable.