Home repossessions lower in Q2

UK home repossessions fell by 10% in the second quarter of the year compared with the first three months of 2009, figures from the Council of Mortgage Lenders (CML) suggest.

The number of homes repossessed fell to 11,400 in the three months to the end of June, down from 12,700 in Q1.

The fall reflects the support lenders are giving to borrowers where customers are trying to resolve their payment problems, while Government schemes were also helping borrowers in difficulty, according to the CML.

But the number was still 14% greater than the 10,000 cases of repossession in the second quarter of 2008.

Low interests have also helped mortgage arrears to level off, despite the recession, giving borrowers a better chance of getting back on track.

At the end of June, there were 205,600 of loans in arrears by 2.5% or more, a modest deterioration from the 203,900 at the end of the first quarter.

In the second quarter of 2008, that number stood at 139,700.

Jackie Bennett, head of policy at the CML, says the data showed that lenders are committed to helping borrowers manage their way through payment problems and get their mortgage back on track.

"Clearly, low interest rates are also helping borrowers who are committed to working to resolve their arrears, paying what they can - and when they can - towards their mortgage, and maintaining good communication with their lender," she says.

"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."