The number of homeowners at risk of losing their homes because they have fallen behind on their mortgages has risen by nearly a quarter in the past year, figures showed today.

The Ministry of Justice revealed that a total of 28,658 mortgage possession orders were made in England and Wales during the second quarter of this year, up 24 per cent from the same period a year ago.

Latest numbers from the Council of Mortgage Lenders estimate 170,000 mortgages will be over three months in arrears by the end of 2008.

Here we explain the steps to take to prevent you losing your home.

Q: What should I do if I am struggling to make my mortgage payments?

A: Get on the phone to your mortgage lender straight away. The sooner that you deal with the situation, the more options you have and the less chance you will lose your home.

Before you call, do some planning so you can produce a detailed statement of your income, spending and debts; explain any plans you have to increase your income or reduce your spending; and explain what changes you would like to make to the mortgage repayments.

Lenders have a range of options to deal with customers in difficulties. Your lender may allow you to cut your monthly mortgage payments or even take a payment holiday but only for a limited period of time, as it won't want you to get even deeper into debt, making the situation worse.

Any arrears you have could then be added to your loan, so that when you are ready to resume normal payments you don't feel like you are still playing catch up.

Alternatively, you may be offered the chance to extend your mortgage term. This gives you more time to repay the debt so your monthly repayments will be lower.

Q: What will happen if I don't contact my lender and fall behind with my payments?

A: Your lender will write to you asking you to pay back the arrears. If you are unable to do so it can then take out a court order against you.

You will be asked to attend a court hearing where a judge will consider the claim against you and any offers you have made to deal with the arrears. The judge may then grant a possession order against you.

Even at this stage you will not necessarily lose your home. Repossession proceedings can be abandoned even after an order has been granted if a payment plan is agreed.

If an eviction does take place it will be carried out by baliffs who must inform you of the date in advance.

Q: If I hand back my keys can I walk away from the debt?

A: You could still be responsible for the debt and may be pursued for it years later.

Q: Are there any other options?

A: Increasing numbers of homeowners are using sale-and-leaseback schemes as a way out of mortgage arrears. These allow homeowners in financial difficulty to sell their property and then rent it back, so they can avoid the stress and strain of eviction.

But experts advise caution as many of the schemes offer little security. The landlord can issue a tenancy agreement for as little as six months and then, at the end of that period, try to raise the rent. If you cannot pay the rent, you risk losing your home.

Controls exist for action taken by mortgage lenders when customers are in arrears, but there are no such safeguards for customers entering into sale-and-leaseback schemes as they are not regulated.

Q: Where can I go for advice?

A: Many courts have help desks which are there to provide last minute legal advice on the day of a repossession hearing.

However, it is better not to leave it until the last minute.

The Consumer Credit Counselling Service , a debt advice organisation, has set up a dedicated help centre for people having trouble paying their mortgage.

Shelter has a free housing advice line on 0800 800 4444 or you could contact your local Citizen's Advice Bureau for help.