WORKERS on a project set up to fight repossessions today told how the number of homeowners unable to pay their mortgage in Glasgow has reached crisis levels.

WORKERS on a project set up to fight repossessions today told how the number of homeowners unable to pay their mortgage in Glasgow has reached crisis levels.

Bosses at Govan Law Centre's Preventing Homelessness say the scheme is inundated with desperate people whose properties are at risk because they have racked up unmanageable debt.

The centre currently has hundreds of cases going through court - and it can't cope with any more.

The numbers are so high, the project - set up two years ago by Glasgow City Council - has stopped taking on new cases.

Mike Dailly, principal lawyer at the centre and the project's founder, said they were currently representing more than 200 homeowners.

He said: "The situation is a nightmare. We are struggling to cope and have stopped taking on cases.

"The project has helped 1000 families under the threat of repossession over the last two years but that's just the tip of the iceberg."

Mr Dailly spoke out after homelessness charity Shelter Scotland revealed 913 homeless applications were made in Scotland last year because of mortgage defaults - a 14% jump from 2006.

The charity has issued a plea to the Scottish Government to set up a free advice service to combat the problem.

James Jopling, of Shelter Scotland, said: "There is strong evidence to suggest mortgage default and repossessions in Scotland are an increasing problem.

"The UK and Scottish governments, mortgage lenders and the Financial Services Authority must take responsibility to ensure that if people face difficulty there is protection in place and somewhere to turn for advice."

Kathy, 41, from north Glasgow, and her family are just a few of the hundreds who found themselves homeless after having to sell her home to pay off debts of more than £15,000.

The mother-of-four, who asked to have her surname withheld, and her husband were left with the debt from a loan secured on their home to fund a catering business which fell through.

Kathy said: "We were both having sleepless nights and my husband suffered from depression.

"We were advised it would be better to sell off our home, pay off our debts and get back onto the mortgage ladder at a later date."

Glasgow City Council placed the family in temporary accommodation for two years.

Eventually Kathy decided to contact Shelter, which helped them find a new rented home.

She added: "I never thought I would become homeless. Many people think being homeless means being on the streets.

"We have been in our new tenancy for almost a year and are feeling more settled and secure."