The number of properties repossessed by mortgage lenders fell during Q2 2013, with only 7,700 cases recorded in the quarter, down 3% from the previous quarter according to the Council of Mortgage Lenders (CML).

In the first six months of the year, the number of cases of possession totalled 15,700, the lowest number since the second half of 2007, when there were 13,100 cases.

Jackie Bennett, the CMLs head of policy, said: "Given the pressures on household incomes, the continuing modest decline in arrears and possessions is welcome. Low interest rates and lower than expected unemployment is providing some relief for households, and borrowers are continuing to prioritise mortgage payments while lenders are showing forbearance where it is viable.”

The number of mortgages in arrears by over 2.5% of the balance also fell in the quarter to 1.4% of loans, a total of 157,700 mortgages which is the lowest number recorded since the end of Q3 2008.

Within the total number of mortgages in arrears at the end of June, 80,800 had arrears of more than 2.5% but less than 5% of the balance, 31,600 were in the range of 5-7.5% of the balance, 15,000 at between 7.5-10% of the balance, and 30,300 with arrears of 10% or more of the balance.

Bennett continued: "As ever, the key message for those borrowers is that they should talk to their lender as soon as possible if they believe they are in danger of missing a mortgage payment. Lenders want to keep people in their homes where possible, and most problems can only be contained if the borrower and lender work together at the earliest opportunity on a solution tailored to the borrowers circumstances."