TENS of thousands of Victorian homeowners face losing their properties as inflation reaches a seven-year high, a mortgage expert predicts.

After the 1.3 per cent jump in the Consumer Price Index, Anatomy of Australian Mortgage Stress author Martin North says the writing is on the wall for many.

"Even if the Reserve Bank acts, we'll see banks continue to put rates up because of the credit crunch," Mr North said.

By September, he predicts 900,000 households Australia-wide will be under some form of mortgage stress; slightly fewer than 400,000 will be under severe stress.

"Severe stress" indicators in the report include delayed mortgage payments.

Mr North said 75,000 people could end up losing their homes "one way or another."

He said Victoria and NSW were the states experiencing the most long-term stress.

He said households forced to sell were not confined to battlers and young families: "We will see it in some of the more affluent areas as well."

Williamstown householder Cheryl Henkel says half her wage goes on the mortgage.

Ms Henkel worries she will have to sell the house she has lived in for more than 16 years if interest rates rise again.

"I am hanging on to this house by tenterhooks," she said. "Within six months of buying, my payments went up 18 per cent. I only survived then because I had savings.

"I have no savings left and if interest rates rise, I will simply have to sell."

Consumer Action Law Centre director of policy and campaigns Gerard Brody said: "We encourage customers to try and vary their repayments at an early stage to try to keep their house."

Herald Sun April 24th 2008