HousesAs new research highlights the areas of the country most at risk of repossession, we look at what to do if you're struggling to pay your mortgage.

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Repossession. The nightmare scenario for homeowners. According to mortgage lenders, 45,000 homes will be repossessed across 2012. And new research from Shelter has identified the areas most likely to be hit.

As part of its repossession research, Shelter highlighted the top five repossession hotspots.

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In top place was Barking and Dagenham, which had 8.44 repossession claims for every 1,000 homes in private ownership. That's double the national average, and almost eight times more than West Dorset.

Other hotspots included Knowsley, Thurrock, Lewisham and Rossendale.

Local authority

Number of claims per 1,000 private homes

Barking & Dagenham

8.44

Knowsley

7.20

Thurrock

6.51

Lewisham

6.46

Rossendale

6.46
So why are certain areas suffering more repossession claims than others?

Rachel Orr, Campaigns manager of Shelter, said that the research had found that areas with higher unemployment tended to also suffer above average repossessions.

She added: "But it can happen for all sorts of reasons. We speak to people everyday who are at risk of repossession - they might have lost their job, but it might just be a small reduction in the number of hours they work. Or simply that their wages aren't rising as fast as their food bills and fuel bills."

If you are having issues with your mortgage payments, the first step should always be to talk to your mortgage lender. There are a number of ways they can help:

The lender may agree to the following in order to help you manage your repayments:
  • Increase the term of your loan.
  • Accept reduced payments from you in the short term.
  • Add any repayment debt to the amount you have borrowed.
If you can't reach an agreement with your lender or you can't pay at all, it's time to get some advice.

Matt Hartley, Media Officer of the Consumer Credit Counselling Service, explained that debt charities can try to negotiate with lenders on your behalf, but also help you get to the crux of why you are struggling to pay.

He added: "It's important to look at your whole budget, all of the debts you need to pay, and come up with an affordable way of dealing with them."

The worst thing you can do is ignore letters from your lender, and just hope that your worries will disappear. If you take action early, there's no reason why you won't be able to stay in your home.

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