If you thought things were bad stateside, take a look at what’s going on over in the United Kingdom.
That equates to about 28 percent of its customers, with £22 billion of Northern Rock’s £66.7 billion home loan portfolio now underwater.
The figures back up a report released last week by market research firm GfK, which suggested, much to economist skepticism, that one in three mortgage holders in the UK was in a similar position.
The unprecedented number of borrowers owing more on their mortgages than the value of their homes could be attributed to double-digit property value declines and high-risk mortgage products, such as the Together mortgage, which allowed negative amortization up to 125 percent.
Northern Rock has also seen its stock of repossessed homes rise 63 percent from a year earlier.
In the United States, it is estimated that one in five homeowners are currently underwater on their mortgages, though that number is sure to rise.