THOUSANDS of families in Yorkshire are burdened with mortgages that could put them at risk of losing their homes if interest rates rise, an MP has warned.
Labour produced figures suggesting almost 50,000 households in Yorkshire are spending more than 35 per cent of their income paying their mortgages.
Financial advisers generally recommend housebuyers should try and avoid paying more than 35 to 40 per cent of their net income on a mortgage.
Shadow Housing Secretary John Healey, the Wentworth and Dearne MP, said: “Whether it’s losing your job or having your mortgage costs hiked as a result of interest rate rises, unexpected financial shocks can happen to anyone.
“The uncertainty of Brexit and stripping away of support for lower income home-owners by the current government means we need to look again at how we can help keep families in their homes if times get tough.
“Labour did it before in the wake of the global financial crisis in 2008.
“Ministers should now be urgently looking at how we give home-owners who have paid into the system more permanent financial security.”
Concern is growing about the potential impact a financial shock could have on families with mortgages with inflation forecast to rise which could lead to higher interest rates.
Financial experts are warniong years of record low interest rates have lured homeowners into a false sense of security over what they can afford.
It is feared a sharp rise in interest rates to levels more normal by historical standards could leave large numbers of mortgage payers struggling.