Three parts of SE1 are among the top ten areas of London at risk of negative equity if house prices fall sharply, according to figures released this week by credit agency Experian.
The SE1 3xx postcode sector – which includes Bermondsey Street – has the highest average loan-to-value (LTV) ratio in SE1 (more than 69 per cent) and the fifth highest in London, according to data from Experian published in the Evening Standard this week.
Experian rates anyone with a loan worth more than 60 per cent of the value of their property as "high risk". Half of SE1's 10 postcode sectors have average LTV ratios above this level.
The whole of the North Southwark & Bermondsey and Vauxhall parliamentary constituencies are deemed to have an "above average" risk of negative equity.
If house prices fall homeowners could find their properties are worth less than what they owe to their lenders.
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