Homeowners that are struggling with money problems should prioritise their debts in order to avoid repossession, according to the Council of Mortgage Lenders (CML).
Communication between lenders and customers is important and agreements should be reached over which debts need to be repaid with the most urgency, the council maintains.
With financial discipline and the right advice from appropriate parties, British homeowners can avoid debt management disaster and remain in possession of their home, says the CML.
"Lenders are committed to keeping the number of repossessions as low as possible, even in more challenging economic conditions," said Michael Coogan, the council’s director general.
Mr Coogan’s comments came after figures from the Ministry of Justice showed that the number of court orders for repossession in England and Wales was 17 per cent higher in the first quarter of this year compared with the same period in 2007.