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The number of homeowners facing repossession orders after failing to keep up with mortgage payments is up, says the Ministry of Justice.

It says the number of orders made by the courts in England and Wales at an early stage of the repossession process rose 17% in the first quarter of 2008.There were 27,530 orders made, up from 23,438 in the same period of 2007.

The credit crunch has led to more expensive repayments for new mortgages and a cut in the availability of deals.

There were 38,688 claims in the first three months of the year compared with 33,344 in the same period of 2007, a rise of 16%. This was also 7% higher than the final three months of 2007.

The Ministry of Justice figures show that the increase in the numbers of orders made was greatest in Wales - up 26% in the first three months of the year compared with the same period last year.

There was a 23% rise over the same period in the North West, and increases of 22% in the Midlands, 9% in the South East, 11% in the South West and 1% in the North East.

The BBC's economics editor Stephanie Flanders says that the number of repossession claims and orders has been rising sharply since 2005, partly because a long period of rising house prices has given lenders an interest in prodding homeowners to sell.

However, she adds that the great majority of these orders will not result in a house being repossessed, but clearly lenders are resorting to the courts more readily than they did in the past.

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