The number of homeowners in England and Wales facing repossession after falling behind on their mortgages has risen by nearly a quarter in the past year, figures showed today.

It is the highest level since the last recession, reflecting the increased burden placed on British borrowers as the cost of living soars.

Government data showed a total of 28,658 mortgage possession orders were made in England and Wales during the second quarter of this year, up 24 per cent from the same period a year ago. It is a 4 per cent rise compared to the first three months of 2008.

Today's figures from the Ministry of Justice come a week after lenders' data for actual repossessions across the UK also showed a leap in numbers.
Repossession orders come early in the process and so do not always end with somebody losing their home.

It is when a court grants an order for the possession of a home, but is sometimes abandoned if a repayment deal can be struck between mortgage lender and borrower.

The Ministry of Justice said there were 39,078 mortgage possession claims in the second quarter of 2008, an increase of 17 per cent on 2007 but unchanged on the first quarter.

The number of repossession claims reached a 15-year high at 137,591 last year and has continued to climb as the higher cost of mortgages hits homeowners following a series of interest rate rises last year.

In recent months homeowners have had to re-fix their mortgages at significantly higher mortgage rates after the cheap fixed loans they took out several years ago expired.

Lenders have also become increasingly risk-averse amid the credit crunch, with many people at the end of short-term deals finding it hard to remortgage and often forced on to their lender's more expensive standard variable rate.