If the economy were to enter a similar financial slump to the one it experienced in the early 90s, almost 25 per cent more homeowners would find themselves at risk of repossession, a new report has revealed.
A study published by the Joseph Rowntree Foundation has revealed that some vulnerable homeowners are now even more at risk than they were at the peak of the housing market downturn in 1992.
Report co-author Steve Wilcox urged: "With housing market conditions tightening it’s time to re-think how to best help these households and to provide better underpinning for the housing market – and the wider economy."
Citizens Advice warned that some lenders are not doing all they can to help struggling homeowners avoid repossession.
The charity has claimed that some creditors are hurrying their troubled clients to court rather than renegotiating the payments or offering advice.
Some, it claimed, are "piling on" additional charges to debtors who have already fallen behind.