The number of people losing their homes after failing to keep up with mortgage repayments has almost doubled from a year ago, according to figures from the Financial Services Authority.

The number of possession orders granted by courts in the third quarter of 2008 was 13,161 - a 92% rise on a year ago. A possession order involves the court handing over legal control of a property to the lender, although this does not always result in eviction.

The FSA said that a further 340,000 were about three months behind on their mortgage repayments, up 24% from last year and a “significant” 10% jump from the previous quarter. The watchdog added that 2.9% of mortgage holders were now in arrears on repayments, and that this group managed to pay an average of 42% of their normal repayments each month.

The Council of Mortgage Lenders forecast last year that the number of households more than 3 months behind on their repayments would reach 500,000 in 2009, more than double 2008’s figure, estimated at 210,000. Lenders also predicted that the economic slowdown would lead to 75,000 repossessions this year - the highest number since 1991.

Last week it was announced that mortgage lending fell by 30% last year to its lowest level since 2002.

The government has put in place a number of schemes to help homeowners struggling to meet repayments. One initiative enables not-for-profit housing associations to buy up homes from people struggling to pay their mortgage and allows the former homeowners to carry on living there as tenants. The government has also cut the waiting time for people who have suddenly been made redundant to receive financial help from 39 weeks to 13 weeks.

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