CML: 360,000 mortgages will be in arrears this year

Date:Tuesday 23rd June 2009
Author: Max Freedman

By the end of this year, a total of around 360,000 mortgages will be in arrears, according to the Council of Mortgage Lenders (CML).

This is equivalent to around 2.5 per cent or more of the country's mortgage balance, the organisation pointed out.

Meanwhile, the council lowered its prediction concerning the number of UK homes it expects to see repossessed this year.

While it had initially anticipated that around 75,000 properties would be repossessed over the 12-month period, this figure has now been revised to 65,000.

The CML commented: "The raft of measures taken by the authorities have stabilised the economy and will sow the seeds for a recovery over time, including in the housing market. But the improvement is likely to be slow and drawn out."

Earlier this month, it was announced that the Treasury Committee is to undertake a short inquiry into mortgage finance and arrears in Britain.