Many people in Britain live in fear of repossession if either they or their partner lose their job, it has been revealed.

New statistics compiled by Which? show 62 per cent of people fear being made redundant, while over four in ten are anxious they would not be able to pay the mortgage if this were to happen.

"With people spending sleepless nights worrying about job losses and repossessions, the Industry needs to demonstrate that it wants to win back the trust of the British public by fully embracing government initiatives," comments personal finance campaigner for the body Doug Taylor.

He adds that it is "worrying" how so many people fear losing a roof over their heads, which may encourage people to consider debt management or an individual voluntary agreement.

The results also show a quarter of mortgage holders – or 4.2 million people – are concerned they may go into negative equity over the course of the next year, while 73 per cent of people believe more should be done on a government level to prevent repossessions.

According to the Council of Mortgage Lenders, lending activity decreased further in January, when only 23,4000 loans for house purchase were completed.