Separately, 44% of respondents said they believed they could enter negative equity during their current mortgage term — a finding that points to a disconnect between present confidence and future expectations.
Concerns about negative equity were most acute among younger borrowers. More than half (56%) of buyers aged 25–34 said they believed they were likely to enter negative equity during their mortgage term, compared with 26% of those aged 45–54, 21% of those aged 55–64, and 15% of buyers aged 65 and over.
| 18–24 | 25–34 | 35–44 | 45–54 | 55–64 | 65+ | |
|---|---|---|---|---|---|---|
| Very likely | 10% | 11% | 13% | 6% | 2% | 3% |
| Fairly likely | 25% | 45% | 38% | 19% | 19% | 12% |
| Unsure | 38% | 23% | 27% | 38% | 43% | 48% |
| Unlikely | 23% | 15% | 12% | 19% | 20% | 17% |
| Very unlikely | 5% | 6% | 9% | 18% | 16% | 20% |
Source: Boon Brokers
“These findings outline that younger homebuyers today are thinking far beyond simply getting onto the property ladder,” said Gerard Boon (pictured right), managing director at Boon Brokers. “They’re considering how future market conditions could affect the equity they build over the lifetime of their mortgage.”
The Boon Brokers research also showed a significant regional variation. In London, 51% of respondents said it was either very or fairly likely they would enter negative equity during their current mortgage term — the highest figure among the cities surveyed. This compared with 49% in Nottingham, 48% in Birmingham, 35% in Manchester, and 27% in Leeds.
Levels of concern followed a similar pattern. In London, 57% of respondents said they were either very or extremely concerned about equity losses, compared with 50% in Birmingham, 49% in Nottingham, 34% in Leeds, and 30% in Manchester.
