The number of court orders for the Scarborough area rose by 165 per cent – way above the national average of 17 per cent – compared to the same period last year.

Government figures show 27,530 homes were seized by lenders across the country with 90 of these being made in Scarborough.

Scarborough's MP, Robert Goodwill, said: "It's going to get worse. Every quarter there are going to be more people with fixed rates of four or five per cent that will have to pay more and those houses that have been repossessed will be put on to a market that's very weak already.

"First time buyers are finding they are going to have to wait a couple of years to save their deposit and during the time it takes to save up for the deposit there aren't going to be first time buyers there."

He added that a number of factors had contributed to the situation and the affects of the recent credit crunch were still to be felt.

Estate agent Brett Thornton, of Thornton Holbrough in Victoria Road, said the range of mortgages had reduced as lenders became more cautious after the recent credit crunch.

He said: "The cost of living is high at the moment. If people are in difficulty with their mortgage they've got to speak to their lender and let them know they are in difficulty. They have to treat them fairly."

He said repossession was always a last resort and, if things went that far, then it was probably due to people ignoring the issue and any correspondence from the lender.

Fellow estate agent Colin Ellis said: "I think it's a shame when repossessions take place. Often it's the last resort. It's not a very good thing to happen to anybody."

Mr Ellis said the housing market had been good for the past four or five years and this was one way it could go. He said: "There has been irresponsible lending and the Government still hasn't put a stop on it."

In response ministers have urged people not to panic and unveiled a rescue package which offers free financial advice for those in trouble.

Housing minister Caroline Flint said: "The fundamentals of the housing market remain strong, with high employment, low interest rates and long-term demand for homes from first-time buyers."

Caroline Davey, a spokeswoman for the housing charity Shelter, blamed banks and building societies. She said: "I think the lenders have to take a share of the responsibility. What they haven't done is help people who are struggling, having taken on mortgages that they simply can't afford."

The director-general of the Council of Mortgage Lenders, Michael Coogan, said: "No-one wants to see repossessions rise. But risk is a part of life, and for some households circumstances change and they cannot get back on their feet."

l What do you think? Are you one of the 90 homeowners who have been a victim of repossession? Write to the Evening News, 17-23 Aberdeen Walk, Scarbor-ough, YO11 1BB or contact the newsdesk on (01723) 383817.

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