Tens of thousands of homeowners face eviction after banks ended a Christmas ban on repossessions.

Mortgage lenders had collectively agreed not to repossess any homes over the festive period, but this moratorium has now lifted and evictions will once again take place.

This has sparked fears that a wave of homeowners could lose their properties as the cost of living crisis has left them unable to afford their repayments. Rising mortgage rates, food costs and household bills have left household finances in a perilous state.

According to the most recent statistics published by banking trade body UK Finance, 74,210 homeowners were in arrears in the third quarter of 2021. Around 28,000 were in “significant” arrears, meaning they had missed payments worth 10pc or more of their outstanding balance.

Over the same period, banks repossessed 410 homes, a 242pc rise compared to the previous year, when a separate repossession ban was in place.

Richard Lane of StepChange, the debt charity, said: “While the Christmas moratorium on mortgage possessions was welcome, it was only going to be a sticking plaster for people looking to resolve their problems and keep their homes.

“As households face greater financial challenges with the rising costs of living, the risk of falling behind on priority debts such as mortgage payments may increase.”