Number of mortgages with 1.5% arrears 'falls'

Date:Wednesday 16th December 2009
Author: Max Freedman

The amount of mortgages which have arrears of 1.5 per cent or more of the overall balance has fallen to 2.57 per cent in the third quarter, the Financial Services Authority has shown.

This number has declined from the 2.63 per cent it reported in the second quarter, with their reports of possessions up to 14,000 from 13,600 in the same period.

However, commenting on the statistics, the Council of Mortgage Lenders (CML) has stated that its own figures show a larger decline, with its numbers falling from 2.80 per cent to 2.61 per cent.

The CML's figures for possession is at 11,400, compared to the 11,700 seen in the last quarter, although it admits that, as its statistics do not cover a large portion of second rate charging its figures will always be lower.

CML director general Michael Coogan said: "Arrears and possessions are lower than expected earlier in the year, and the majority of the population have been choosing to stay on their standard variable rates or move to trackers."

In November, the CML reported that the number of loans for house purchases during October reached 55,000, the highest it had been since December 2007.