Recession tracker

The number of people falling behind with their mortgages is expected to jump in 2009, with the Council of Mortgage Lenders (CML) estimating that 360,000 mortgages will be in arrears by 2.5% or more of the outstanding balance.

Actual repossessions rose to 40,000 in 2008 - climbing by 54% compared with the previous year, according to CML figures.

The lenders' group also expects repossessions to climb sharply to 65,000 this year.

The number of individuals becoming insolvent has also increased in recent years, the main cause has been the inability to pay off debts.

The figure spiked in 2006 when banks encouraged individuals in difficulty to seek voluntary arrangements. Now, bankruptcies are rising again, and 86% are initiated by the debtors themselves.

Individual insolvency figures also include self-employed small traders. Company bankruptcies have also been rising.