CHL Mortgages has revealed ongoing improvements to its arrears levels across its buy-to-let and home loan mortgage book. Figures up until the end of quarter three 2010 show a 22% year-on year reduction in gross arrears (over 30 days). CHL also expects that by the end of 2010 it will have seen a 40% reduction in gross arrears since their peak in February last year. The lender now expects this trend to continue downward throughout 2011.

Other trends noticeable in CHL’s mortgage book are an overall improvement in the performance of those accounts where a receiver of rent has been appointed. One in three receivers of rents cases have now been repaired; Receiver of Rents such as Alder King and Touchstone collect the rental income from properties where the mortgage is in arrears and pay those monies direct to CHL. Where appropriate, performing receiver of rents cases are then handed back to the control of the borrower.

CHL anticipates a continuing increase in the number of accounts which might have been deemed ‘delinquent’ now moving to ‘performing’ status. It has also seen a 30% decrease in impairment charges and anticipates a similar decrease over the next 12 months. Their losses are apparently quite low when compared to some other specialist and high-street lenders.

Bob Young, Managing Director at CHL Mortgages, said: “The improvement we have seen in terms of arrears and the performance of our receiver of rents cases is ongoing proof that our comprehensive mortgage account management strategy continues to be successful.”