More families in Thanet are feeling the financial pinch, with a dramatic rise in the number of homes being repossessed.

The number of mortgage possession claims rose by 14 per cent over the past 12 months, with 120 homeowners facing the prospect of handing in their keys as they struggle to keep up with repayments.

Only Canterbury and Maidstone saw a bigger increase, with the number of claims up 15 per cent in both districts, although only three authorities in Kent saw decreases.

Around 40,000 claims were made nationally in the first three months of 2008, 16 per cent higher than the same period last year.

Citizens Advice Bureaux (CAB) in England and Wales have already dealt with a third more inquiries about mortgage arrears so far this year compared to same period in 2007.

However, Bernadette Wilcox, district manager for Thanet CAB, said the service was expecting to see an even bigger increase later this year.

She said: “People are beginning to struggle but most aren’t seeking help at the moment.

“We expect it’ll be another few months before financial problems really start to bite.

“Debt is a major problem in Thanet and we have been drowned by the number of inquiries.

“Fortunately the number of mortgage possession claims in Thanet is relatively low because most people live in rented properties.”