Arrears and house possessions fall during Q1 2010

The number of house repossessions and mortgages in arrears fell during the first quarter of 2010, it has been reported.

According to the Council of Mortgage Lenders CML, the number of repossessions was 9,800, down from 10,600 in the previous quarter, while 186,300 mortgagees were behind on their payments compared to 196,400 three months earlier.

However, the CML says there is no room for complacency as a large number of households are only just coping.

CML director-general Michael Coogan said that with all eyes on the new government and what steps it will take to address the fiscal deficit, he could not emphasise too strongly the importance of "continuing to fund the support mechanisms that are proving effective in containing mortgage arrears and repossessions".

He stated: "The dampening effects on households and the wider housing market that fiscal tightening is likely to exert are still to be felt, but it should be a key priority to support borrowers most in need and maintain funding for the government's housing policies."

Bernard Clarke, spokesperson at the CML, this week welcomed Bank of England reports pointing to cheaper short-term fixed-rate mortgage products.

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2010-05-14 13:54:10 © Moneyextra.com