The number of homeowners across England facing the threat of repossession in the last three months is now 37,740, a rise of 17% on the previous quarter.

This figure represents an increase of 20% from the same time last year, when the number of repossession claims issued stood at 31,533.

The Ministry of Justice figures show court cases involving cash-strapped homeowners have risen in almost every region throughout the country, and point to the fact that some lenders are using court action earlier than ever before to 'manage' their borrowers mortgage problems.

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The figures are backed up by new Shelter statistics, which show more than 6,000 worried homeowners approached Shelter with mortgage problems in just the first three months of 2008, a huge increase of 38 per cent on the same period last year.

Shelter Chief Executive Adam Sampson warned: "The worst fears of thousands of homeowners are now becoming a tragic reality. Mortgage lenders should be helping homeowners to stay in their homes, but with some, it's a case of miss a couple of payments and you'll find yourself in court.

"Homeowners are being hammered from all sides as they face the end of fixed term deals, are saddled with new costlier mortgages, and cope with soaring food and fuel bills. People are sinking in a sea of debt and sadly under the pressure, they are losing their homes."

(CD/JM)