MORE than 700 people in Bolton faced having their homes repossessed last year, according to new Government figures.

The number represents a 50 per cent increase on 2006.

Statistics from the Department for Constitutional Affairs reveal that mortgage lenders obtained court orders against 199 people during the last quarter of 2007, taking the annual total to 711.

But a spokesman for the Council of Mortgage Lenders said not all court action led to people losing their homes.

Richard Powter, aged 35, is a broker at Heaton Mortgages in Verdure Avenue, Bolton. He said: "This increase could be because the cost of living has become more expensive and homeowners have over-stretched themselves on a mortgage because of the interest rate rises last year."

Despite the Bank of England cutting interest rates by 0.25 per cent at the end of the year, 27,100 people throughout the country had their homes repossessed last year.

In Greater Manchester, there were 8,973 court actions in 2007, compared to 7,852 in 2006 and 6,116 the year before.

Mr Powter said: "If you want to avoid repossession, which sometimes is unavoidable, there are some schemes where you can sell and rent the property back. However, this is a last resort and homeowners should be cautious of such schemes.

"If I was them I'd try to sell the property and then downgrade, maybe buy something smaller or rent for a while until they have reassessed their financial position."

A spokesman for the Council of Mortgage Lenders said: "The number of court actions entered will be significantly higher than the number of actual repossessions. Court action is often started but subsequently abandoned if lender and borrower reach a payment agreement, which can happen right up to the very end of the process, even after a court order has been issued in some cases."

Property investor Mark Hawthorn, aged 27, owns Landmark Investments, of Westgate Avenue, Bolton.

He said: "We are getting an increasing number of calls each week from homeowners facing repossession, both in Bolton and the wider North-west.

"In the current market, a lot of people have borrowed up to their limit and in many cases the properties are not worth what they were.

"This can leave people stuck in the negative equity trap and this can last for years. With no equity to act as a safety net, repossession is the only option."

Anyone struggling with their mortgage or with any other housing problem should go to www.shelter.org.uk or call a free housing advice line on 0808 800 4444.