9,100 homes were repossessed in the UK in the first three months of 2011, up 15% from the last three months of 2010, says the Council of Mortgage Lenders (CML).

Oddly, the number of householders falling behind on mortgage payments has declined slightly since December. Another oddity: The repossession rate is actually 10% lower than the same period in 2010.

Repossessions are up while mortgage holders in arrears are down? How can this be?

What this means, in likelihood, is simply that more lenders are giving householders who need help with debt a chance to get back on track with mortgage payments, rather than repossessing homes quickly. It’s a reflection of the economic stress homeowners are under across the UK.

A squeeze on incomes is going to make things more difficult for homeowners, and lenders have a range of options to nurse borrowers through temporary problems. Debt management companies, who have experience dealing with mortgage companies, are often equipped to work out a debt management plan to help strapped households.

The CML warns that households will be financially stretched for some time, with thousands needing some form of debt assistance, whether it is IVA help or a debt management plan. The group has predicted that a total of 40,000 people will lose their homes this year, up from 36,300 in 2010.

A related problem is falling house prices and inactivity in the housing market, which is certain to cause problems for some families facing financial difficulties. The best advice for heads of households who need help with debt is to seek help, and the sooner the better.

By James Murray