The number of residential mortgage loans in negative equity fell by 1,621 cases to 1,861 cases with an aggregate value of $3 billion in the fourth quarter last year, the Monetary Authority says.

Compared with the peak of 106,000 cases in June 2003 the number has fallen 98%.

The estimated unsecured portion of these loans was lowered to $400 million. The loan-to-value ratio of the negative-equity residential mortgage loans rose to 117% from 116% at the end of September.