Research by Moore & Blatch shows that 75% of mortgage lenders think repossessions will rise by at least 5% in 2007.
The repossession litigation specialists says some 20% of lenders anticipate a 10% -15% increase, while a further 20% anticipate a 15% plus increase in repossessions.
Furthermore, 75% of lenders see excessive borrowing from other sources as
the prime cause of financial problems leading to repossession.
Paul Walshe, head of lender services at Moore & Blatch, says: We see two
significant trends in the market.
Firstly, affordability is key and people are just taking out too much debt, particularly on credit cards our research shows that 92% of lenders think more should be done to curb credit card borrowing.
Secondly, what the repossessions figures don’t show is the number of people who, if they are in arrears and unable to pay the mortgage, choose to sell their property before repossession takes place.
They are able to do this because of the buoyancy of the housing market.
“However, if the market were to cool significantly, we could see repossessions figures rising significantly.