BUSINESS
08/12/2008 05:12 am ET Updated May 25, 2011

HSBC Sees Dive In Profits, Jump In Negative-Equity Loans

More than one in 10 mortgages are in negative equity or close to being plunged into it, one of the world's biggest banks admitted today.

HSBC said it has seen a shocking 40 per cent jump in the size of loans which are larger than the value of the property.

In the UK, it had £460million of 'negative equity mortgages' in the six months to the end of June, compared to just £330million at the end of December.

But there is also a further £5.2billion of loans where the loan-to-value is 90 per cent or more.

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