Citizens Advice (CA) report that firms who specialise in loans to those on low incomes or with risky credit histories are taking a hard line when customers fall behind on payments.
It was the problems with the sub prime mortgage market in the USA that started the credit crisis. Some analysts have suggested that repossessions could reach 70,000 in 2008 - the highest since 1991.
The CA balmes the crisis on finance companies selling expensive home loans that were 'doomed to fail'.
The CA report looked at 1,200 cases and reveals how difficult the target of home ownership is for many on low incomes. Its research found that as many as 770,000 people have missed at least one mortgage or secured loan payment in the last 12 months.
It claims sub-prime lenders have handed out loans to many people on low incomes or with a patchy credit history that they cannot repay.
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