Statistics published this week by the Council of Mortgage Lenders (CML) show that the number of mortgage possessions fell in the second quarter of the year, while cases of arrears leveled off.
A combination of factors has helped keep mortgage arrears and possessions in check, despite the recession. Low interest rates are helping ensure that arrears grow less quickly, giving borrowers a better chance of getting back on track and lenders more scope to extend forbearance and government schemes are providing some help for borrowers in difficulty by promoting early communication between borrowers, lenders and debt advisers. The CML reported they were pleased to see that lenders are showing forbearance to borrowers when customers are trying to resolve their payment problems and have a realistic chance of doing so
However, while the figures reflect the efforts being made to manage mortgage arrears and avoid possession if possible, the CML warned that there can be no complacency…