There is no accurate data to definitely to say what the actual number of home-owners in negative equity.
The 11% figure is from the Financial Services Authority and is based on a house price fall of 20%.
On that basis, the FSA estimates that around 11% of UK owner-occupier mortgages were in negative equity at the end of 2009 Q1, equivalent to 1.1 million households.
The 7% figure is based on a survey of households and ask them to estimate the current value of their house and outstanding mortgage. Those who report that the value of their mortgage is larger than the value of their house are estimated to be in negative equity.
In real terms 7% would equate to 700,000 households
If the upper estimate is 11% then that would equate to 1.1 million households - the same amount that were in negative equity in May to July 1995.
But the Bank says factors such as the speed at which house prices have fallen compared to the recession in the early 90s, and the fact that 24% of all mortgages in 2007 were interest only, could mean there are actually more households in negative equity now.
If you're facing problems repaying your mortgage speak to Baines and Ernst now by visiting http://www.bainesandernst.co.uk
