Borrowers most affected, are people who fall under the 'sub-prime' market (adverse credit files due to various conditions in their past, including CCJ's -county court judgments, IVA's and other bad credit conditions).



Other possible repossession candidates are the 1.8 million people coming to the end of their fixed rate terms in a market where we have seen 5 increases in the base rate over the past 12 months.

Many borrowers have other loans to repay, cars to run and families to bring up so costs can soon mount, leaving them completely over extended so 'baton down the hatches' is an understatement with the probability of yet another interest increase within the next couple of months.

If you are facing repossession and you want to know what happens next take the following steps:

1. Talk to your Bank or Building Society as early as possible to explore your options. Delaying this and allowing mortgage arrears to mount up makes it difficult for the lenders to offer a counselling ear and take a lenient stance. An eviction could leave you homeless so act now!

2. Reduce your outgoings, by economising when shopping and cutting all luxury subscriptions. Be aware of what you are spending.

3. Increase your income. This may be possible by working extra hours, taking on lodgers or applying for extra benefits.

4. If there is no way of paying the arrears and the continuous monthly payments then the other option is to start thinking: "I need to sell my house fast".Remember that getting mortgages after a repossession will be very difficult so if the clock is ticking then registering with an estate agent is not a viable option as this will take time. Selling through an auction is fast but isn't guaranteed so the quickest way to sell your house is go to a private investor or property company who will buy your home within weeks. If you want to stay in your home you should make sure they offer you a rent back option allowing you to rent your home from them after the sale has completed. If you think your circumstances may change in the future you should go to a specialist company who can also offer you a buy back option allowing you to buy back your home when in a better financial position.

This hike in repossessions has a nightmare affect on homeowners who lose their properties and is generally the result of people innocently trying to get a foot on the property ladder without realising the consequences of future interest rate increases or changes in circumstances.

If you have mortgage arrears, are facing repossession or have a court hearing don't waste time and act now, before it is too late.