The 63-year-old divorcee had lived in his house for four years with his teenage daughter, and worked as a self-employed garden designer, but he had to stop working when he was diagnosed with post-traumatic stress disorder. In July 2006, Lebanese-born Zouhair returned to Lebanon for the first time in 40 years and got caught up in the month-long conflict with Israel.

"I escaped via the mountains because it was horrendous," he says. "I became completely dysfunctional."

Zouhair wrote to his mortgage lender and asked for a period of leniency while he recovered from his escape, but they refused to help him and sent a bailiff that December with a possession order – giving him just 28 days to leave his house.

He then turned to housing charity Shelter which was able to get an adjournment, but in August last year, he lost the battle and his home was repossessed.

Zouhair says: "I felt like no-one was listening to me – when I was in trouble there was absolutely no-one there to help me. It was very frightening."

The threat of repossession is every home-owner's worst nightmare and it is happening to more and more people as the current slump takes hold.

Figures released this week by the Financial Services Authority showed a 40 per cent surge in repossessions with 9,152 from January to March, up from 6,471 in the same period last year.

The authority also found that the number of mortgages three months or more in arrears rose by 15 per cent in the same period – representing 2.44 per cent of all UK mortgages.

Lesley Titcomb, FSA director responsible for the mortgage sector, says it is "vital" mortgage firms treat homeowners fairly.

"This means paying attention to their individual circumstances and not repossessing their homes when there may be an alternative solution."

Shelter chief executive Adam Sampson says the figures "paint a terrifying picture showing real people – hard working families, young first time buyers – all living in the shadow of repossession and ultimately homelessness.

"We see many homeowners owing very small amounts of money, whose lives are wrecked by some, particularly sub-prime, lenders racing to repossess... where a solution could have been found."

The Citizens Advice Bureau dealt with more than 57,000 problems about mortgage and secured loan arrears last year and these problems rose by 35 per cent in the first two months of 2008 compared with the same period in 2007.

Sue Edwards, head of consumer policy at the CAB called on the FSA and the Government to take urgent action.

"This should involve strengthening the rules on mortgage arrears and lending practices.

"In the meantime it is vital that lenders treat their customers fairly and sympathetically and consider alternative options to ensure that repossession really does become a last resort."

After the repossession, Zouhair's house was valued at £259,000 but sold for less than £200,000 at auction, with the debt forcing his small business into receivership.

With benefits from his local authority and a pension from his previous career as a teacher, Zouhair is now able to rent.

"I've gone from a property-owning gentleman to a humble, decent human being, but I'm alive!" he says.

"If it hadn't been for Shelter's help, I wouldn't be here today because I wanted to curl up and die."

He advises others in his situation to get as much help as possible - and don't despair.

"Take the first letter you receive to Shelter.

"Contact your local authority regarding housing and benefits and do not accept no for an answer," he says.

"Do not be intimidated – you're not on your own and you don't have to feel ashamed."

Caroline Davey from the charity says if you are struggling with mortgage payments, don't panic.

"Remember, falling behind does not inevitably mean you will lose the roof over your head.

"Among the worst errors people can make is burying their heads in the sand and dodging calls and letters from their lender or taking on more debt to try and pay off their mortgage," she says.

"The earlier you seek help, the more options you are likely to have."

If you are struggling

• Make mortgage payments your top priority but let your mortgage lender know if you're having problems – don't just stop paying. Your lender will be more likely to give you time to sort out your finances if you are honest with them.


• Get free, independent advice as soon as possible. Don't wait until you're threatened with court action. Contact your nearest Citizens Advice Bureau, the National Debtline on 0808 808 4000 or Shelter on 0808 800 4444.


• Find out if it's possible to reduce your monthly payments by increasing the length of the mortgage.


• If you lose your job or are unable to work because of illness or injury, check for any mortgage payment protection insurance you may have and get advice on benefits, tax credits and other help you may be entitled to.


• Don't ignore court papers and court hearings. If you are notified your lender is seeking possession through the courts, don't make the mistake of thinking it's all over and you've already lost your home. Don't be intimidated by your lender into believing there's no point attending the court hearing.


• Do some hard budgeting. Write a list of the money you have coming in each week or month and what you spend over the same period. Include all your outgoings. Then show this to your lender.


• Don't turn to debt management companies. They will probably charge large fees for their advice.


• Don't think extra borrowing will solve your arrears problems – it will probably make matters worse and lead you further into debt.


• Don't think losing your home is inevitable. There are a variety of options available before you reach the last resort of repossession. Your lender should be able to give you the best advice.