The Council of Mortgage Lenders recently revealed that 36,300 repossessions by first-charge mortgage lenders in 2010 accounted for just 0.3% of all outstanding mortgages. This number was 24% lower than in 2009, while the number of mortgages ending 2010 with arrears of 2.5% or more of the outstanding balance also fell by 13% on the previous year-end, standing at 169,600 representing some 0.49% of all loans.

During the fourth quarter of 2010, the number of repossessions was 7,900 (down 11% from 8,900 in the third quarter and down 26% on the 10,700 in the same period a year ago). This was the fifth consecutive quarterly decline in repossessions.

On mortgage arrears, there were 1.49% of mortgages with 2.5% or more of arrears at the end of the fourth quarter which was the lowest share since the third quarter of 2008 (1.29%). This compared with 176,100 (1.55%) arrears cases at the end of September, and 196,000 (1.72%) at the end of 2009.

CML director general Michael Coogan said: "Lenders are continuing to work hard to help their borrowers who face temporary financial difficulties. Anyone who is worried about being unable to pay their mortgage should contact their lender and seek advice at an early stage from Citizens Advice, Shelter, National Debtline or other local advice agencies.

"As we go through 2011, the number of people facing payment pressures may increase if interest rates rise, and as a result of the spending cuts that have resulted in reductions in the level of public support available. We will be monitoring developments closely, but at present we continue to expect the number of arrears and repossessions to be in line with our forecasts of 40,000 repossessions and 180,000 arrears cases as at the end of 2011."