Mortgage lenders in the UK are planning to get tough with the tens of thousands of homeowners that have taken out sub-prime mortgages, intended for borrowers with less than perfect credit histories.

A number of mortgage lenders are offering home buyers loans that they are unable to repay, according to the Financial Services Authority (FSA).

Should you sell and rent back?
With increasing numbers of homeowners facing problems keeping up with mortgage payments, sell and rent back solutions are becoming more and more popular.

With rising interest rates, more people are getting into mortgage arrears recently; while the number of repossessions is tipped to rise next year. Here are ten steps to help borrowers avoid getting into arrears with mortgages and risking repossession.

The Council of Mortgage Lenders recently predicted that, thanks to interest rate rises and other factors, home repossessions would reach the highest levels since the 1990s next year.

Home repossessions are set to rise dramatically next year, and will reach levels not seen since the 1990s house price crash, according to figures released by the Council of Mortgage Lenders.