According to the BBC, more than 23,200 people who took out 100% mortgages in the year to 31 March could face negative equity.

Falling house prices mean the amount borrowed could be greater than the value of their properties.The data from the Council of Mortgage Lenders comes as figures show the housing market is slowing down further.Separate housing figures suggest the number of transactions per estate agent has hit a 30-year low.These figures from the Royal Institution of Chartered Surveyors (Rics) come as banks are imposing stricter requirements on borrowers, in the wake of the credit crisis.

However, the 23,200 people who’ve taken out these 100% mortgages represent only around 2.5% of the total mortgages given out in that period, and a much smaller percentage of the overall number of mortgages in the UK. If a house loses its value it is not necessarily a problem unless the owner has to move, or cannot afford to pay the mortgage.

In a rising market banks are prepared to lend 100% mortgages as there is little risk of them not getting their money back.