It's crunch time for homeowners with hefty mortgages as more and more people struggle to keep up with their repayments.
The global credit crunch has forced more property owners than ever to resort to drastic measures just to meet their monthly mortgage payments.
Across south Essex, people are taking in lodgers and even putting their homes up for sale because of the recent hike in interest rates.
Although the Bank of Engalnd has cut interest rates, mortgage lenders refuse to budge and their rates continue to rise.
New statistics show almost 28,000 people across Basildon, Southend and Thurrock are at risk of losing their homes and defaulting on their mortgages this year because they are classed as having a "subprime loan exposure".
Now a local politician is warning something must be done to counteract the debilitating interest rates facing families before there is a return to the dark days of 1993. In just one year, nearly 60,000 people lost their homes across the UK.
Stephen Metcalfe, prospective Conservative MP for South Basildon and East Thurrock, expressed his concern at the alarming new figures, which have been compiled by the Spectator magazine.
He said: "The crisis in the credit market is reducing the availability of cheap loans and mortgages, hitting people on the housing ladder and those not yet on it.
"This year, 1.4million mortgages will come to the end of their fixed-rate periods. As interest rates are higher now than two years ago this could add £200 to the average monthly mortgage, placing more pressure on severely stretched family budgets."
Mr Metcalfe wants lenders to do more to help families and has urged them to contact home owners up to six months before the end of their fixed rate mortgage deals to discuss their options.
His warning comes as the latest Government figures show nearly 18,000 homes across the South East were hit with repossession orders last year. Across Basildon and Thurrock, 1,056 repossession orders were granted through the county courts compared with 609 in Southend and 383 in more affluent Chelmsford.
The gloomy forecast for this year predicts a record number of people could lose their homes - a staggering 45,000 homes nationwide, compared with 27,000 last year.
News that last month house prices fell by 2.5 per cent across the country has further compounded people's fears.
Southend Citizens Advice Bureau, based in Church Road, has confirmed debt tops the list of enquiries it receives.
Trish Carpenter, the bureau's manager, said most people changed from asking for credit card debt advice to voicing worries about losing their homes.
It's not only those on the housing ladder set to suffer - those struggling even to clamber on are also going to be affected.
Banks have withdrawn 100 per cent mortgages for customers, leading to first-time buyers having to save around £15,000 just to get themselves on the property ladder.
The advice to anyone finding themselves in the situation of not being able to pay their mortgage is to contact their lender as quickly as possible.
Although lenders will almost always say they will take action to repossess a home if payments are missed, it could be possible to negotiate lesser payments for a short while or to take a payment holiday.
Single mum facing strain
SPLITTING with her partner caused not only an emotional headache for Louise Maxwell, 33, of Kings Road, Laindon, but a financial migraine that has forced her to put her home up for sale.
The single mum-of-two has not only had to tighten her purse strings to deal with a change of personal circumstances, but also to meet the payments for her £170,000 mortgage with lenders, GMAC.
"My partner and I split up and I suddenly found myself having to pay for the mortgage on my own," she said.
"It was enough of a struggle for the first six months, but I scraped by. But now my fixed rate deal has come to an end and my monthly payments have soared by an extra £200 - meaning my payments are now well over £1,000 a month.
"I just can't afford this, but I'm in a Catch-22 situation. Because of the credit crunch I can't remortgage alone and although "I've put my house up for sale I just can't sell it at the moment.
"I am now having to live from month to month, worrying all the time how I'm going to afford the next month's mortgage.
"It's a very stressful time at the moment."
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