THE number of homeowners in York facing repossession of their homes has soared by 20 per cent - despite an increase of only one per cent nationally.

New figures show 11 people are being taken to court by mortgage lenders every week in the city.

According to a Government report, 138 people in York were taken to courts in the last three months, compared to 115 during the same period last year.

Across North Yorkshire, 324 homeowners face having their homes repossessed - an increase of 14 per cent.

But nationally, the number of homeowners staring repossession in the face has increased by only one per cent.

In the last 12 months, 1,303 householders in North Yorkshire have been taken to county court by mortgage lenders, and 520 in York.

Adam Sampson, chief executive of homeless charity Shelter, said: "These figures will no doubt set alarm bells ringing for hundreds of homeowners across the county.

"In fact, the impact on homeowners could be even more severe than the nightmare of the early 90s as the current safety net for people facing repossession is significantly worse than it was then.

"Given the Government's willingness to jump to the rescue of Northern Rock, they should now show the same compassion to those facing mortgage difficulties and save thousands of homeowners from the devastating effects of repossession and homelessness.

"Such a stark warning must prompt better regulation of mortgage lending in order to clamp down on the irresponsible practices of some lenders. There is also a clear need for improved access to independent advice for people in mortgage difficulty."

Mike Horncastle, manager of York Credit Union, said there had been an increase in people applying for loans to pay their mortgages or rent.

He said: "We are certainly seeing more and more people who are facing mortgage arrears or rent arrears, there's no question of that."

But Kevin Hollinrake, director of York estate agency Hunters, urged home owners not to lose hope.

He said: "There is no doubt that the market is much more difficult and more people are struggling to pay their mortgages.

"We've seen five interest rate rises in the last 12 months and that is putting a lot of pressure on a lot of people."

But he said medium to long-term forecasts were stable.

"Our advice to anybody is if you are in trouble speak to your building society or an independent mortgage advisor.

"People lose hope sometimes when they see interest rates having climbed, but I think they will start to drop in the New Year and it will start to get easier for people."