Unsecured borrowing is at the heart of repossession problems and more should be done to forewarn borrowers of the risks they are taking, according to repossession specialist Moore Blatch.

Venturing that 96 per cent of mortgage lenders believe all borrowing should carry risk warnings over repossessions and related issues, the group's research has revealed a new industry willingness to confront growing repayment problems.

The Liberal Democrat party recently calculated that some 60,000 families in the UK are currently at high risk of seeing their homes repossessed, a number twice as high as at the same time last year.

Paul Walshe, head of lender services at Moore Blatch, said: "Unsecured borrowing has been given a boost by lenders reducing the availability of mortgage equity.

"In the past, many people in financial difficulty may have raised finance by withdrawing equity from their property, and are now being forced into taking out personal loans or increasing their overdraft facilities, subjecting themselves to high interest rates."

The Liberal Democrat analysis claims that families facing repossession threats are forced to cut down on essential everyday spending in order to make crucial mortgage repayments.