Mortgage problems 'not as bad as people think'

08-Aug-2008

People with mortgages are not having as much trouble with repayments as commonly thought, according to new figures.

Commenting on the latest data on repossessions, the Council of Mortgage Lenders (CML) said it would maintain its forecast of 45,000 total possessions and 170,000 mortgages in arrears of more than three months by the end of the year.

The CML noted that the numbers remain "extremely small" when viewed in the context of the 11.74 million mortgages in the UK.

Michael Coogan, the body's director general, remarked that higher costs of food and fuel, as well as higher mortgage rates, have not put off repayments for the majority.

"It is inevitable that more borrowers' coping strategies will come under pressure in current conditions than in the unusually benign years of the last decade," he acknowledged.

"That's why lenders, government and the advice sector are working closely together to minimise the impact on borrowers."

Individuals worried about potential financial difficulties are advised to contact their mortgage lender to discuss available options.

The CML's figures show that the number of households with mortgage arrears of three months or more was 155,600 at the end of the first half of this year.

At the same time last year, the figure stood at 120,800.

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