Homeowners have been assured that they should not worry about negative equity unless they are planning to move.

Price comparison site Moneysupermarket.com said while negative equity is a "serious business", people should not start to panic.

The comments came in response to figures showing that more than a million people are now in negative equity.

According to the Council of Mortgage Lenders, this is because of recent reductions in property values across the UK.

However, Moneysupermarket warned that people who are facing negative or low equity to take positive action if they can.

"The current low interest rate environment is an ideal opportunity to make overpayments and thus increase their equity,"it commented.

Interest rates in the UK are currently at an all-time low of 0.5 per cent.

The monetary policy committee opted to leave them at this level for the second consecutive month at its most recent meeting.

Written by Mark Garner

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