Over 10,000 households in Wolverhampton South West could be at risk of defaulting on mortgage payments

2.22.00pm UTC (GMT +0000) Thu 17th Apr 2008

Over 10,000 households in Wolverhampton South West could be at risk of defaulting on mortgage payments and losing their home, according to an analysis conducted by The Spectator magazine.

The magazine has taken data from Experian, the credit rating agency, and found that 10,801 households (or 29.1%) are in their 'sub-prime profile'. This, they argue, measures susceptibility to default and therefore the areas where repossessions and negative equity are most likely to bite in the months ahead.

Colin Ross, Chair of Wolverhampton South West Liberal Democrats, said "Homeowners are having to deal with increased interest payments as their fixed-term mortgages come up for renewal. Large numbers of households simply cannot afford to pay. There will be an epidemic of repossessions unless the Government forces mortgage lenders to moderate the process by offering shared ownership and payment holidays to keep people in their homes. Ministers should also consider how social landlords can be helped to buy up property to prevent a fire sale in the housing market."