The number of Britons losing their homes due to bad debt hit an eight-year high in the first half of 2007 amid rising interest rates.
The Council of Mortgage Lenders said home repossessions soared by almost a third in the first half of this year compared to a year ago to 14,000 - the highest since 1999 and roughly 77 homes a day.
Official figures also showed personal insolvencies at near record levels, with the equivalent of nearly 12 people an hour succumbing to bad debt in the three months to the end of June.
But economists said the situation in Britain was unlikely to significantly affect markets on top of US housing market problems that have already rattled global financial markets over fears about bad debts and the onset of a swift and severe slowdown.
The Bank of England has increased borrowing costs five times to 5.75 per cent since last August and is expected to push interest rates up to 6 per cent by the end of the year to bring above-target inflation back under control.