By Suzanne Bargon
House repossessions have shot up by more than 70% during the second quarter of the year compared to last years figures, according to recent figures.
The number of people unable to reach their mortgage repayments, resulting in the repossession of their homes, is around 11,000.
This equates to around 120 families a day losing their homes in the three months leading from April to the end of June 2008.
This figure could get even worse as the number of home owners unable to meet their mortgage repayments soared by 16 per cent to 312,332, says the Financial Services Authority.
Not all of these will lead to repossessions, and mortgage lenders are being urged to contact their lender as soon as they find themselves struggling to make repayments.
The average arrears that home owners are now facing has rocketed from £700 to £4800. All in all figures from the FSA showed the total amount due in arrears mounts up to a total of £1.5billion.
This is the second time that the FSA has released figures of this kind. The figures started being compiled at the start of 2007 and are based on information collated from around 300 regulated mortgage lenders.
It has been estimated that around 45,000 homes in the UK will be repossessed in the whole of 2008, up from 27,100 last year, told by the Council of Mortgage Lenders.
This is almost a 50% increase in house repossessions one year on.
The doom and gloom news does not seem to stop there as it was also revealed by a separate study that house prices have fallen by 8 per cent in a year.
The Land Registry, responsible for compiling these figures, revealed house prices in England and Wales dropped by 2 per cent in September.
The average house price in the UK now surfacing around £168,814.