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Repos are down but arrears still rising

The number of repossessions dropped by 10 per cent in the second quarter of this year, according to the Council of Mortgage Lenders.

Its figures show that 11,400 homes were repossessed in Q2, down from 12,700 in the first three months. But the data shows that borrowers in arrears continue to increase.

At the end of June, the number of borrowers in arrears by three months or more rose to 270,400, up from 264,700 in the first quarter or 2009 and a big rise from 152,700 in Q12008.

The CML says the fall in repossessions is due to a combination of continued low interest rates and lenders working with borrowers to help manage arrears. Head of policy Jackie Bennett says: “With unemployment rising and the economy still weak, the outlook will remain challenging for the rest of this year and into 2010. The data shows lenders are committed to helping borrowers manage their way through payment problems and get their mortgage back on track over time, avoiding possession where possible.”

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