The 2010 repossessions annual report, which compiles the views of lenders and repossessions experts, revealed that half of the mortgage lenders who predict an increase believe repossessions will rise by as much as 5%.
Only 17% see a rise of between 5-15% and a further 6% foresee a rise in repossessions of over 15%.
The results also revealed that only 28% thought there would be no change in repossessions in 2010 while 6% believe there will be a decrease.
The lenders ranked excessive borrowing from other sources, redundancy, marital/ partner separation and interest rate rises as the main causes of repossessions.
Paul Walshe, head of lender services at Moore Blatch, said that the fall in repossessions last year occurred due to the implementation of the Pre Action Protocol, the Government initiative to provide consistency in lenders’ approach to repossessions.
He added: “Sadly, the underlying cause of repossession, which is excessive borrowing is still causing people to default on their mortgages. This is one of the reasons why we believe that all providers of finance, whether, mortgages, credit cards, car loan or any other source, should have to take into account total borrowing before offering any money, as it is often secondary borrowing that tips people over the edge, and into losing their home.”
