James Duddridge, MP for Rochford and Southend East, has today expressed concern at new figures which warn that hundreds of families in Southend and Rochford could be amongst the 5 million British families at risk of defaulting on mortgage payments and losing their home.
James has noted the analysis conducted by The Spectator magazine using data from credit agencies, which shows that 8,695 households in the Rochford and Southend East constituency have a ‘sub-prime loan exposure’ and may be now struggling with debt.
This comes as the latest official Government figures show that nearly 18,000 homes across the South East were hit with repossession orders last year – with 609 orders being issued by the court in Southend in 2007. The Bank of England has also warned that banks and building societies are planning to cut back their lending further in coming months.
The Conservative Party is 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
• 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 by the Government for first time buyers, for homes up to £250,000.
Speaking today, James said:
“This week has brought more worrying evidence that under Gordon Brown, our economy is built on debt. Labour’s record is one of economic incompetence.
“Thousands of families across Southend and Rochford are now exposed to the possibility of losing their home. With many households facing soaring bills as their fixed rates come to an end, mortgage lenders should do more to help home owners with the soaring cost of living and help reduce the hardship under Gordon Brown’s Government.”
4 April 2008