There has been an increase in people seeking advice about mortgage arrears, it has been revealed.

According to Citizens Advice, 35 per cent more people requested help with the problem during January and February than in the same two months of 2007.

The figures follow research by the Financial Services Authority which found that 20 per cent of mortgage holders are concerned about meeting their repayments over the next 12 months.

In addition, Citizens Advice Bureaux in England and Wales have dealt with 215,000 new problems in January and February alone, with rises reported in problems of council tax, gas, water, electricity and telephone bills.

Teresa Perchard, director of policy for the organisation, said the figures "paint a worrying picture".

"The combination of big increases in household bills, especially fuel, and rising housing costs, is putting additional pressure on people's finances when they are already stretched to the limit," she commented.

© Adfero Ltd