Two state owned banks are to warn customers who are struggling financially to cut back or face losing their home.

The warnings will be carried out by UK Asset Resolution (UKAR) which has found around 30,000 customers who could struggle if interest rates were to rise.

UKAR will contact customers in order to go through an income and expenditure so they can find areas where people can save money or put them in touch with a debt advice charity.

The two banks , Bradford and Bingley & Northern Rock have also admitted to carrying out secret credit checks which has come under criticism due to privacy. The credit rating company Experian said a company needs a customers permission to carry out a credit check.