Homeowners experiencing mortgage difficulties and who do not engage with their banks, now face legal proceedings.
Financial regulator Matthew Elderfield has warned that customers who do not cooperate with their banks could also be ruling themselves out of benefitting from new personal insolvency rules.
Mr Elderfield said repossessions would "inevitably rise".
However, he said, cooperating homeowners who are insolvent and at the threshold of repossession, can expect long-term modification of their loans which would see them repay what debt they can and also remain in their homes.
In an address to the Institute of Directors, Matthew Elderfield earlier said we could expect to see carefully targeted debt relief for homeowners who engage fully with their banks.
