The news comes as the property market begins to feel the full effects of the credit crunch and threatens to spell financial heartache for thousands of Ulster homeowners.

House repossessions via the courts have risen by almost 40% in just six years - with experts predicting that figure will rocket over the coming months.

But although court service figures confirm a significant increase in Mortgage Repossession actions - from approximately 1,600 in 2002, up to 2,213 in 2007 - the figure falls short of reflecting reality.

Speaking to the Belfast Telegraph today, Scott Kennerley, Research, Training and Development Officer (Money Advice) at Citizens Advice Regional Office, said it was only the tip of the iceberg.

"The 40% increase in mortgage actions for repossession in Northern Ireland is sizeable, but that doesn't give the full picture," he said.

"They are only the cases that get to court. Some people sell their homes, or give them back, to avoid court action, but at the end of the day they still lose their homes."

He added: "The time for tightening our belts is upon us."

Research by credit reference agency Experian revealed that on top of growing mortgage debt, Northern Ireland also experienced the biggest change in total debt, up 23% in the last 12 months.

The findings also showed that spiralling house prices - where the NI average is £250,586, and the UK is £222,256 - represent a hike of 39% in just one year, compared with just 6% nationwide.

Analysts agree there are tough times ahead - especially given the recent hikes in fuel prices, rates and grocery bills - with some feeling that consumers were duped during the property boom.

Housing expert Paddy Gray pointed to what he called "irresponsible lending" on the part of financiers, which has helped fan the flames of repossession.

"There's an affordability crisis looming," he said.

"There was a frenzy at the peak of the boom last year, when people were willing to pay just about anything for a property. Many over-stretched themselves beyond their means, and didn't factor in the cost of living."