Mortgage arrears and possessions are continuing to decline in the second quarter of 2014, according to data published today by the Council of Mortgage Lenders (CML).

The number of mortgages in arrears of 2.5% or more of the balance stood at 131,400 at the end of June, down from 138,200 three months earlier and 154,900 (1.38%) a year ago. There was a fall in numbers across all arrears bands, and the overall total is now at its lowest since the first quarter of 2008.

-- Advertisement --

A total of 5,400 properties were taken into possession in the second quarter, down from 6,400 in the preceding quarter and 7,600 a year ago. At 11,800, the number of cases of possession in the first half of this year was at its lowest since the second half of 2006.

CML director general Paul Smee said: "Another fall in arrears and possessions is clearly welcome and shows that borrowers, lenders and money advisers are generally continuing to work well to contain payment problems where they arise, helped by an improving economy and low interest rates. But rates will rise at some stage, of course, and borrowers should be planning for that now."

(CD/MH)