Worrying numbers of home owners in Stourbridge facing debt problems

Margot James, Conservative Candidate for Stourbridge, expressed concern at new figures which warn that 5 million families across Britain could be at risk of defaulting on mortgage payments and losing their home.

The analysis, credit rating agency Experian uses data from credit agencies, shows that nearly 7000 households in Stourbridge have a "sub-prime loan exposure", and may be now struggling with debt.

The crisis in the credit market is reducing the availablity of cheap loans and mortgages, hitting people on the housing ladder and those not yet on it. This year, 1.4 million mortgages will come to the end of their fixed rate periods. As interest rates are higher now than they were two years ago, this could add £200 to the average monthly mortgage bill, placing yet more pressure on severely stretched family budgets.

Conservatives are calling on mortgage lenders to do more to help these families by:

• Contacting home owners 3-6 months before the end of their fixed rate mortgage period,
• Offering free financial advice, and
• Not imposing sudden hikes in repayments.

First time buyers are suffering from the credit crunch too, as mortgage lenders are demanding larger deposits. In response, Conservatives are calling for stamp duty to be abolished for first time buyers, for homes up to £250,000.

Margot James said "the imminent rise in mortgage costs puts an added pressure on the cost of living, already under threat from rising utility, petrol and food bills, it is extraordinary that given this environment the government are abolishing the 10p tax band leaving anyone without children earning £18,000 pa worse off".