High street banks actively help borrowers who are struggling with home loans to retain ownership of their properties, it is argued.

Angela Knight, chief executive of the British Bankers' Association, makes her comments following research released by the Financial Services Authority.

The study published by the body showed the number of repossessions had risen.

It urged banks and other loan providers to treat customers fairly if they failed to make payments, recommending they use court action as a final resort.

Ms Knight asserts high street banks, which provide around two in three of all home loans in the UK, had experienced only a small rise in repossession numbers.

"Home repossession is absolutely the last resort for banks. Our high street lenders are actively helping more people stay in their homes in these difficult times," she continues.

Any borrowers finding it difficult to pay their loan or mortgage should get in touch with their lender as soon as possible, the chief executive adds.