Up to 60,000 families are at a high risk of repossession - double the number who had their homes repossessed last year - Liberal Democrat analysis of official figures has revealed.
The figures show that the families affected are spending over 75% of their disposal income each month on mortgage payments alone.
Commenting, Liberal Democrat Shadow Communities and Local Government Secretary, Julia Goldsworthy said:
“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.
“But Ministers are not prepared to deal with the housing crash as the safety nets have been withdrawn. There are almost a million fewer social homes to rent than during the last recession while the number of families waiting for housing has skyrocketed.
“This Government has buried its head in the sand, and it is overstretched families who are paying the price.
“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.”