S&P forecasts rise in home repossessions The number of home repossessions looks set to rise over 2013 on the back of weak economic conditions, according to a leading ratings agency. Standard & Poor's, one of the big-three agencies, on Thursday forecast a rise in repossessions from an estimated 35,000 this year to 39,000, or 0.37 per cent of all mortgages next year. High unemployment, falling house prices and sluggish wage growth would prompt the rise. These economic factors would, however, be partially offset by ultra-loose monetary policy, coupled with lenders" unwillingness to foreclose on properties while the housing market remains in poor shape "We believe that historically low interest rates are likely helping borrowers to stay afloat," the report said. Lenders may also be reluctant to foreclose on severely delinquent loans, opting instead to relax the original loan terms, a trend that's difficult to measure and predict. Top Bank of England officials have warned in recent weeks that lenders" qualms about writing off bad loans could hinder medium-term growth. S&P's estimate is based on unemployment rising to 8 per cent and house prices falling by 0.4 per cent in each quarter of next year. The calculations also assume that the average standard variable mortgage rate will rise by half a percentage point as lenders attempt to pass on high funding costs to borrowers. If mortgage rates remained at the same level, then it estimates the rate of foreclosures for 2013 would fall to 37,000.