MP DAVID Chaytor has confirmed he faces a criminal inquiry following allegations that he wrongly claimed nearly £13,000 in mortgage insurance payments on a London flat.

He is among a small number of MPs and peers set to be interviewed by the Metropolitan Police which last week decided to launch an inquiry into alleged misuse of expenses.

The Bury North MP, who has already been barred by his own party from fighting the next general election, said police had been in contact with his solicitor.

Speaking to the Bury Times, he said: “I was told last week that the police wanted to interview a small number of MPs and peers and I understand that I am one of them. I am happy to co-operate with any inquiry.”

Commenting on the pending police investigation, he added: “This is not something I would have chosen. But as I’ve said right from the start, I know I’ve made an error. It’s a very complicated situation and I am determined that the taxpayer will not lose out at all.

“I want the opportunity to explain in great detail how I got into these difficulties and how the error occurred.”

Last month the Daily Telegraph alleged that between September, 2005, and August, 2006, the MP claimed £1,175 a month for mortgage interest on a Westminster flat. According to the newspaper, Land Registry records showed the mortgage on the property had been paid off in January, 2004.

Following the revelations, Mr Chaytor apologised “unreservedly” to his constituents and said he was ready to fight to clear his name.

Earlier this month he announced that he was bringing the curtain down on his 12-year Parliamentary career and would not be standing at the next general election. The same day, a Labour Party internal inquiry barred him from fighting his Bury North seat again. In a statement, New Scotland Yard said: “After consideration by the joint Metropolitan Police and Crown Prosecution Service assessment panel, the Met has decided to launch an investigation into the alleged misuse of expenses by a small number of MPs and peers.

“The investigation will be conducted by officers from the Met’s economic and specialist crime command, under the oversight of temporary assistant commissioner Janet Williams.

“The joint Metropolitan Police and Crown Prosecution Service assessment panel continue to consider a small number of other individuals.”

Meanwhile, Mr Chaytor has defended himself against new Daily Telegraph revelations which allege he claimed almost £5,000 on his office allowances for research work carried out by “Sarah Rastrick,” the MP’s daughter. The paper said that Rastrick was her middle name.

The MP said that his daughter had adopted Rastrick as her “professional name” as many young people did when entering a specific career. “Sarah is extremely well qualified to do the work allocated and worked very long hours,” he said.

Asked what reaction the revelations of recent weeks had generated among voters, Mr Chaytor said: “Obviously, I’ve had a large amount of emails. Some of them are hostile but by and large these are from people who are hostile to me anyway.

“I’ve had the support of constituents and party members who are very puzzled and disappointed that I have been embroiled in this affair.

“But no-one is more disappointed than me. I’ve also had a huge number of messages of support and understanding.”

However, criticising the almost daily newspaper disclosures surrounding MPs, he concluded: “Democracy cannot function when elected representatives are subject to attacks and allegations and interrogated over every small detail of the way they manage their lives.”