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CML ready to lower repo forecast as arrears fall

The Council of Mortgage Lenders says it may lower its repossession forecast for 2011 after the latest figures show a 4 per cent fall in repossessions on the same period last year.

So far this year, a total of 27,500 properties have been taken into possession, 4 per cent fewer than in the equivalent period last year.

The CML says it now appears likely that the total number of repossessions in 2011 will be lower than its forecast of 40,000.

The number of properties taken into possession by mortgage lenders in the third quarter of 2011 was 9,200, virtually unchanged from 9,100 in the second quarter.

he number of repossessions in the third quarter was 0.08 per cent of all mortgages, which has been the same level for five of the last six quarters, with the exception of the fourth quarter 2010, which saw a seasonal dip to 0.07 per cent.

There was a slight fall in the number of households in arrears with their mortgage across all categories in the third quarter.

At the end of September, the total number of mortgages with arrears of 2.5 per cent or more of the outstanding balance fell to 161,600, down by 2 per cent from 165,200 and 8 per cent lower than the 175,100 cases at the end of September 2010.

CML director general Paul Smee says: “The fall in the number of mortgages in arrears and the stable picture on repossessions are testament not only to the beneficial effects of low interest rates but also to effective arrears management and good communication between lenders, borrowers and debt counselling organisations.”

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