The homeowners who cannot move home
A report warns that millions of mortgage holders are effectively trapped in their homes because their deposits, or savings, have disappeared.
Falling house prices over the last five years have meant dramatic reductions in the amount of equity that homeowners possess.
The report, by Lloyds TSB, says the trend is causing a bottle-neck in the housing market, and preventing many families from moving.
The problem is particularly acute for so-called "second-steppers," people who managed to buy their first homes, but now want to move up the housing ladder, as their family expands.
http://www.bbc.co.uk/news/business-19372268
A substantial number of those earlier first time buyers only got their mortgages by lying about their income on self certified applications. The static market / fall in values actually helps current first time buyers. We went through this issue of falling prices last time round in 1987/88 ? when multiple tax relief on mortgages ended followed by high interest rates peaking at c. 16%.