Negative equity residential mortgage loans fell 38% from end-March to 8,700 cases at end-June with an aggregate value of $15 billion, the Monetary Authority says.

Compared with a peak of 106,000 cases at end-June 2003, the number has fallen by 92%. The estimated unsecured portion of these loans fell to $2 billion from $4 billion. Correspondingly, the overall loan-to-value ratio fell to 115%.

The quality of the negative-equity loans improved, with the three-month delinquency ratio falling to 1.38% from 1.51% at end-March.