Residential mortgage loans in negative equity fell by 2,000 cases to 4,700 with an aggregate value of $8 billion in the year's second quarter, according to the Monetary Authority's latest survey.

Compared with a peak of 106,000 cases at the end of June 2003, the number has plunged 96%.

The estimated unsecured portion of these loans was steady at $1 billion. The loan-to-value ratio of the negative equity rose to 115% from 114%.

The three-month delinquency ratio of the negative equity residential mortgage loans rose to 1.42% from 1.32% at end-March, due to the contraction of the loans' total portfolio.