More homeowners struggling to meet mortage payments

The charity says the proportion in difficulties has risen from 10 per cent in 2009 to 18 per cent this year.

Shelter chief executive Campbell Robb said: “With potential interest rate rises, higher unemployment and steep increases in food and fuel bills on the horizon, it seems unlikely things are about to get easier for homeowners any time soon.

“Unless we take urgent action we might well be faced with a sudden surge of people at risk of losing their home in the coming months.” Campbell Robb, Shelter

“With so many homeowners in serious difficulty, the pressure could become too much and unless we take urgent action we might well be faced with a sudden surge of people at risk of losing their home in the coming months.”

Repossessions down

But, despite the rise in the number of homeowners in arrears, the number of houses being reposessed by banks and building societies has fallen to a two and a half year low, according to figures released today by the Council of Mortgage Lenders.

In the three months to the end of September, around 8,900 properties were reposessed, five per cent fewer than during the previous quarter and 27 per cent less than on the same quarter last year.

Repossession rates have now fallen for four consecutive quarters, bringing them down to the lowest level since the first quarter of 2008. The drop has been put down to greater forebearance by lenders, low interest rates and the introduction of Government schemes to help people who are struggling to meet their mortgage payments.

The Council of Mortgage Lenders now predicts that 39 thousand people will lose their homes this year.