The number of homeowners falling behind on their mortgage payments has reached the highest level in 12 years. The banks have been accused of cashing in on struggling households as the number increases.

The charges imposed on home owners in arrears by Britain’s high street lenders have been described as unfair by politicians and economists.

According to The Treasury Select Committee the lenders are charging as much as £150 for a visit by a debt counselor and £35 for sending a letter or making a phone call. These are excessive charges that go beyond covering administrative costs and are used to boost profits which is intolerable.

The latest housing statistics showed the number of mortgages in arrears by three months or more reached 270,400, equivalent to 2.43 per cent of all home loans.

Although there has been a drop in the overall repossessions after lenders were told by the Government to only evict families from their home as a last resort but this has come despite of it.

According to CML, the repossession numbers stood at 11,400 which is equivalent to one household in every 1,000, during the three months to June. Even though it is 10 per cent fewer than the previous three months, but it is 14 per cent higher than the second quarter of 2008.

The unemployment has also reached 2.44 million, which is the highest level since 1995 as the official figures showed this week. This shows that there could still be more pain ahead for households. The CML has predicted 65,000 people will have their properties repossessed during 2009, the highest level since 1992.

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