The number of residential mortgage loans in negative equity fell by almost 30% over the quarter ending June, to about 28,200 cases with an aggregate value of $48 billion.

Announcing the results in its latest survey on residential mortgage loans today, the Monetary Authority said the unsecured portion of these loans is estimated to be about $8 billion, down from $36 billion a year previously.

The overall loan-to-value ratio on negative-equity loans fell to 121% from 125% at the end of March as a result of increased collateral values and continued reductions in outstanding balances due to loan repayments.

Reflecting the higher associated risks of loans in negative equity, the weighted average interest rate was 0.65% below the best lending rate, compared with 0.74% at the end of March.

Consistent with the improving economic conditions, the three-month delinquency ratio of negative equity of loans fell to 1.97% from 2.19%.