The number of properties repossessed by residential mortgage lenders dropped to the lowest level since 2007 during the last quarter of last year, according to latest figures from the Council of Mortgage Lenders (CML).
A total of 7,700 homes were repossessed during quarter four of 2012, compared with 8,200 in quarter three, whilst on an annual basis, the number of homes reclaimed by lenders fell from 37,300 in 2011 to 33,900 in 2012.
The volume of borrowers in mortgage arrears dropped to 157,900 in 2012 with arrears of 2.5% of their mortgage balance.
Despite this, the CML warned that a growing number of homeowners are experiencing higher arrears. Nearly 29,000 people had arrears of more than 10% of their mortgage balances; an increase from 28,200 at the end of 2011.
Paul Smee, director general at the CML, stated that homeowners who are worried about their situations should talk to their lender as soon as possible.
"Households fall into difficulty for a variety of reasons, most of which cannot be anticipated," he said. "Wherever possible, lenders will work with borrowers to manage periods of temporary financial difficulty and enable them to keep their home."
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