Conditions within the UK’s housing market are "rapidly worsening", according to the latest assessment of the Council of Mortgage Lenders (CML).

The slump ion prices and borrowing activity has raised the spectre of repossession for thousands of families and the CML is keen to see action taken to slow the housing market downturn.

Earlier this month, the Bank of England cut the base rate of interest by a quarter-point bu the council is convinced of the need for more reductions to ensure that mortgage deals are accessible to UK consumers.

Michael Coogan, director general of the CML, said: "As mortgage costs increase, it remains important for any borrower with potential financial difficulties to speak to their lender as soon as possible and preferably before they have missed a payment."

A report from Prudential recently suggested that money problems are forcing thousands of British families to house three generations under the same roof.

Borrowers in the UK are looking for the certainty when it comes to their mortgage deal, according to a recent report from Abbey.

The banking group is convinced that five-year fixed-rate mortgage deals are set to see a significant increase in popularity as consumers aim to find security against additional debt management issues.

In fact, the proportion of mortgage borrowers who would be willing to fix for five years has increased from ten per cent to 24 per cent over the course of the past month.

According to Abbey, this shift in debt management activity has been prompted by the fall in the number and variety of mortgage deals being made available by money lenders in the UK.

"Not too long ago borrowers felt that shopping around regularly was the way to get the best deal, now homeowners faced with a dwindling number of mortgage deals seem keener then ever to lock themselves into a deal," said Nici Audhlam-Gardiner, director of Abbey Mortgages.

Including mortgage arrears, the typical British household currently has just over £57,000 in outstanding debts, according to figures compiled by Credit Action.

The Bank of England has been urged to "take action fast" to encourage greater lending and borrowing activity within the UK’s housing sector.

According to the National Association of Estate Agents (NAEA), confidence among would-be home buyers around the country has been falling in recent weeks.

With this in mind, the association is keen to see the bank’s monetary policy committee vote to cut interest rates to five per cent when they meet later this week.

There are some positive indicators on the economy but the housing sector is suffering as UK consumers struggle to deal with their money problems and debt management issues, the NAEA has suggested.

Peter Bolton King, the association’s chief executive, said: "The Bank of England needs to reduce interest rates and take action fast."

"It is also imperative that the lenders do likewise as the London interbank offered rate is equally critical to lending and restoring confidence."

A report from the Fair Investment Company recently indicated that debt problems have led an increasing number of British homeowners to seek out long-term fixed-rate mortgage deals.

Many of the millions of homeowners would be happy to enter into a long-term fixed-rate mortgage deal, according to a recent study.

Figures from the Fair Investment Company indicate that around 37 per cent of Britons would be willing to fix their repayment rate for 25 years and for many people the incentive would be avoiding money problems and the prospect of repossession.

In addition to those who would commit to a 25-year mortgage deal, around 28 per cent of homeowners would be glad to agree a medium-term fixed-rate mortgage arrangement, the recently compiled figures suggest.

"A long term deal can provide people more security by reducing the risk involved with having a mortgage, which is particularly important for families with low incomes and for first time buyers," said James Caldwell, director at Fair Investment.

Last week, MoneyExpert.com reported that money problems are forcing millions of British families to cut back on their everyday expenses.