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Mortgage lenders have revealed that the number of mortgage repossessions fell in the last three months, while cases of arrears also leveled off.

The Council of Mortgage Lenders have found that most UK mortgage lenders are showing forbearance to borrowers where customers are trying to resolve their payment problems and have a realistic chance of doing so.

Its figures show that there were 11,400 cases of possession, which is equivalent to one mortgage in 1,000. This is 10% fewer than the 12,700 in the first quarter of the year, but 14% more than the 10,000 cases of possession in the second quarter of last year.

The total number of possessions in the first half of 2009 stands at 24,100, compared with the CML's forecast for the whole year of 65,000. In June, it revised its expectations downwards for arrears and possessions for the year as a whole as it saw that more lenders were finding ways by which people could handle their mortgages better.

But while these figures reflect the efforts being made to manage mortgage arrears and avoid possession if possible, there can be no complacency about the potential scale of future payment problems. While the economy remains weak and with unemployment still growing, arrears and possessions are likely to rise in the second half of the year.

Jackie Bennett, head of policy for the CML says: "The outlook will remain challenging for the rest of this year and into 2010. But this data shows that lenders are committed to helping borrowers manage their way through temporary payment problems and get their mortgage back on track over time, avoiding possession where possible.

"But lenders can only show forbearance if borrowers show a continuing determination to address their problems and discuss them with the lender at the earliest opportunity. So, the key message continues to be to talk to a professional as soon as possible when difficulties emerge and take advice from an independent adviser if you have other debts as well as your mortgage."

If you are struggling to keep up with your mortgage, these figures prove that there is hope and there options available to you. Talk to a mortgage professional – be that a lender, a debt adviser or a mortgage adviser – and tackle any problems you may have head on, as soon as possible.

SOURCE: CML, 14/08/09

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