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Falling house prices in UK and the ongoing credit crunch have made lenders jittery and cheap mortgages harder to come by. Add rising mortgage costs to the increase in gas and electricity prices and it is little wonder homeowners are starting to feel the pinch.

Around 1.4 million borrowers are expected to come off fixed rate mortgages this year, and many will face a payment shock when they do so. These borrowers are expected to be among the most vulnerable to further price rises and could fuel a rise in the number of repossessions. Agencies involved in helping people who fall into debt are already reporting a surge in enquiries.

Now what should you do if you find yourself in trouble?
Actually, more than 50,000 borrowers were six months or more in arrears, and 27,100 homes had been repossessed. The Council of Mortgage Lenders (CML) has predicted repossessions will rise to around 45,000 this year, and some commentators say the figure could be even higher.

So what’s next?
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