Homeowners 'fear worst' over slump

Homeowners fear having tens of thousands wiped off the value of their homes as the credit crunch bites, the Sunday Mirror poll reveals.Some 62 per cent now think their properties will fall in value over the next year. That figure is up from just 25 per cent three months ago.

Of those who predict their properties will tumble in value, nearly half think the loss will be greater than £10,000 and 10 per cent fear they will lose up to £50,000. The Populus poll shows 53 per cent are worried the crisis would make them poorer - of which 13 per cent admit they are "very worried".

Women fear the credit crunch much more than men, with 59 per cent compared with 46 per cent very or "quite worried" it would hit their pockets. The poll comes after figures were released yesterday showing 10 "sub-prime" blackspots across the UK - areas where large numbers of homeowners have taken out loans despite having a chequered credit history.

The worst area was named as Newport in South Wales, where more than one in 10 homes are seen as at high risk of repossession as the credit crunch bites.Scotland, with the exception of Galashiels, and London are best-placed to weather the storm, with less than two per cent of homeowners there having poor credit histories, according to the survey by researchers Fitch.

Adam Sampson, of housing charity Shelter, said: "There are a growing number of people in trouble with their mortgages. "Lenders need to be more understanding and not just reach for repossessions as the standard response." Shelter predicts 50,000 homes could end up being repossessed over the next 12 months.

Louise Cuming, head of mortgages at moneysupermarket.com, said falling prices would help first-time buyers. "The key factor is what interest rate you will be paying if your current mortgage is coming to an end," she added.