North West repossessions on the rise
May 23, 2008 12:00 AM
The North West has the unwelcome accolade of being the region with the highest increase in home repossessions since last year - a hike of 24% compared to the national average of 16%.
NW Euro MP Chris Davies claims this is a visible indicator of the stress felt in many over-borrowed households and is backing his Party's calls for more government help for those affected.
Recent research by the Liberal Democrats show that 60,000 homes in the UK are at high risk of repossession. The study focuses on homeowners that are spending 75% of their disposable income on mortgage repayment and the number of households is double the amount that had their homes repossessed last year.
The Liberal Democrats believe a housing crash could be averted through a national network of financial advice centres. The Citizens Advice Bureau (CAB) usually provides financial advice for those already in debt difficulty but comprehensive support is needed to help people before their debt becomes a crushing burden.
Mr Davies said: "Lack of preventative advice for people is needed before it becomes too late. Although there is some financial education and help for people when they are in difficulty the focus should be on tackling this problem before it occurs."
"As living costs rise and the credit crunch starts to bite, families are forced to cut back on essentials in order to keep a roof above their heads. All too quickly a small debt grows out of control and people don't know where to turn."
The Party is also calling for the government to work with the banks to ensure that as many families as possible can stay in their homes, either through payment holidays or part ownership schemes.
Chris Davies said: "Repossession must only ever be a last resort. Lenders must seek all possible alternatives before taking such action."
Repossession statistics from the Ministry of Justice.
What would you like to do next?
-
Subscribe for updates
Follow the party's activity on...
- Twitter:
- Liberal Democrats
- Facebook:
- Liberal Democrats
- YouTube:
- Liberal Democrats