Lib Dems State a National Network of Financial Advice Centres are Urgently Needed as House Repossessions Rise (Tunbridge Wells Liberal Democrats)

Tunbridge Wells Liberal Democrats <info@twlibdems.org.uk>

Lib Dems State a National Network of Financial Advice Centres are Urgently Needed as House Repossessions Rise

April 6, 2008 3:59 PM

Families are forced to cut back on essentials in order to keep a roof over the heads

Liberal Democrat analysis of official figures has revealed that up to 60,000 families are at a high risk of repossession - double the number who had their homes repossessed last year.

This is based on figures showing that almost 60,000 families with take home pay of less than £1000 per month (after Income Tax and National Insurance) are paying £750 a month (over 75% of their salary) on their mortgage payments. Almost one in three of these families is spending 100% or more of their take home pay on mortgage repayments each month.

Lib Dem Shadow Secretary for Communities Julia Goldsworthy comments "There are 60,000 families teetering on the edge of losing their homes, weighed down by massive debts. 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 over their heads. Ministers must act decisively and commit resources to a national network of financial advice centres, with face-to-face services that are free at the point of use. The Government should also 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."