Repossession risk for 60,000 homes

The Liberal Democrats claim that some 60,000 homes in the UK are at risk of being repossessed.

Analysis by the party highlights that homeowners spend 75 per cent of their disposable income of mortgage repayments, reports the BBC.

Julia Goldsworthy, communities and local government spokesman for the party, warns that "massive debts" are stretching the budgets of thousands of families in the UK.

"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," she says.

Ms Goldsworthy adds that sound financial advice provided to Britons through centres situated throughout the UK could help avert a pending financial crisis.

The government has previously said that while the housing market is experiencing a downturn, levels of repossessions are nowhere near their level in the 1990s.

Last year saw 27,100 repossessions, according to the Council of Mortgage Lenders.