Statistics published by the Council of Mortgage Lenders show that the number of mortgage possessions fell in the second quarter of the year, while cases of arrears levelled off.

The council found that the mix of a low rate environment coupled with forbearance towards borrowers means many have a better chance of getting back on track.

But the UK borrower is not out of the woods yet – the CML figures show show that there were 11,400 cases of possession, equivalent to one UK mortgage in 1,000, in the second three months of 2009, which is down 10% on the first three months, but 14% more than the same time last year. There was a modest deterioration in arrears during the last three months – 205,600 have arrears of around six months, compared with a total of 203,900 at the end of the first three months of 2009.

Jackie Bennett, head of policy for the CML says with the economy still in the doldrums, the outlook will remain challenging for the rest of this year and into 2010.

And Sue Edwards, head of consumer policy for the Citizens Advice Bureau says: "The really vital thing is that people should actively engage their problems early on because what might have been a hopeless situation a year ago could now be effectively addressed by showing more forbearance.

"Many lenders are offering more repayment solutions and through added protection such as the pre-action protocol for mortgage arrears which is designed to make sure that possession action really is a last resort."

If you have debt problems, don't hide behind them. Talk to a financial professional about getting some help and getting back on track. These figures show that there is some hope out there and people are turning their debts around.

SOURCE: CML, CAB, 14/08/09

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