About 65,000 homes are expected to be repossessed this year as unemployment spirals towards three million and thousands more households are hit by a drop in income.

Here Times Money explains the Government 's schemes to support those at risk.

Homeowners Mortgage Support

Borrowers who face a temporary drop in income are able to defer up to 70 per cent of the interest on their mortgage repayments for up to two years under the Homeowners Mortgage Support (HMS) scheme.

The interest is rolled into the existing loan and repaid when homeowners are back on their feet. It is designed to help those who are working fewer hours or on reduced overtime, but are still taking home an income.

A homeowner with a £150,000 interest-only mortgage at a rate of 5 per cent would see monthly repayments fall from £625 to £187.50 under the scheme. The difference of £437.50 would be added to the mortgage. After two years the loan would have increased by £10,500 to £160,500, with repayments jumping to £669.

The lenders participating in the scheme are Lloyds Banking Group, including Halifax and Lloyds TSB, Royal Bank of Scotland and its sister bank, NatWest, plus Northern Rock, Bradford & Bingley, Cumberland Building Society and the Yorkshire and Clydesdale banks. GE Money, the specialist lender, has also signed up.

However, some of Britain's biggest banks and building societies, including Abbey, Barclays, Nationwide and HSBC, have refused to sign up. The six million customers with lenders that have not joined the scheme will not be able to benefit. Households that are unlikely to see a return to full financial health within two years, because of a long-term illness, for example, are unlikely to qualify.

Support for Mortgage Interest

Homeowners on income support, the jobseeker's allowance, pension credits or other means-tested benefits can claim 100 per cent of the interest on their mortgage repayments under the Support for Mortgage Interest (SMI) scheme.

Individuals need to wait 13 weeks after losing their job before making a claim. The threshold on the size of mortgages included is £200,000.

The interest rate that is used to calculate claims is frozen 6.08 per cent until, at least, December.

The high fixed rate means that some claimants — whose mortgage rates have fallen in line with the base rate over the past six months — will have their home loans overpaid by the Government, reducing the mortgage term.

The Department for Work and Pensions (DWP), which runs the scheme, estimates that 200,000 individuals will benefit over the next year. The scheme has been in operation for 20 years and figures from the DWP show that most claimants are pensioners.

New claimants who are on jobseeker's allowance are allowed to collect SMI for only two years.

Mortgage Rescue

This offers help for only the poorest and most vulnerable households that can no longer afford their mortgage repayments.

There are two parts of the scheme.

The first allows homeowners to sell part of their home to a housing association to reduce their mortgage repayments.

The second allows the entire home to be sold to a housing association, with the household paying subsidised rent to remain in the property.

The Department for Communities and Local Government hopes that 6,000 households will be helped by the £200 million scheme over the next two years, but it admits that only 300 have submitted applications so far.

The scheme is available only to the elderly, disabled or families with young children.

Repossession Prevention Fund

The Chancellor used the Budget to introduce this £20 million fund to allow councils to make small loans to families at risk of losing their homes. Households are required to seek debt advice before applying for loans up to £5,000, which are available from local authorities.

Only the elderly, disabled or families with young children are eligible.

For more information on any of the schemes listed above, including how to claim, go to direct.gov.uk.

What if you don't qualify?

If you do not qualify for help from the Government under the schemes to tackle repossessions and you fear that you will not be able to meet your mortgage commitments, you should contact your lender immediately.

Lenders may negotiate a period of lower repayments to keep you in your home, or you can ask about a payment holiday or a switch to an interest-only deal to reduce monthly repayments. Lenders may also extend the loan term to reduce your monthly mortgage costs..

Banks and building societies have agreed not to begin repossession proceedings for at least three months after a customer first slips into arrears. Some lenders, including state-owned banks, have promised six months' breathing space.

If your lender is unwilling to negotiate, speak to a free debt-counselling service, such as the National Debtline (0808 8084000), the Consumer Credit Counselling Service (0800 1381111) or Citizens Advice for further guidance.

Five news stories

Unemployment jumps to 2.4million

Unemployment level 'will rise to 3.3m by end of 2010'

Help for mortgage market and jobless homeowners

Risks of the mortgage rescue package

Banks agree to give those facing repossession more time to pay

Five features

Q&A: How the Homeowners Mortgage Support Scheme works

Q&A: How to access the Mortgage Rescue scheme

What Alistair Darling's Budget means for the property market

What happens when you miss a mortgage payment?

Mortgage rates fall to five-and-a-half year low

Five websites

National Debtline

Consumer Credit Counselling Service

Citizens Advice

Direct.gov

Council of Mortgage Lenders