Britons appear to be getting on top of their borrowings, the latest figures from the Council of Mortgage Lenders (CML) suggest.
According to the newly-released statistics, the number of people falling into arrears on their mortgages stood at 87,300 in the final quarter of 2009.
This compares to the figure of 101,800 recorded in the same period of 2008, suggesting that low interest rates and government efforts such as payment deferral programmes have helped borrowers get on top of their financial commitments, including credit card debts as well as home purchase loans.
The figures also show that repossessions fell by 13 per cent over the same period, meaning significantly fewer people will be hit with a bad credit history during the coming months.
However, announcing the figures, CML director-general Michael Coogan warned: "We are not out of the woods yet - 2010 will still be a challenging year for many borrowers, and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise."
These latest figures come in the same week that Anna Sofat, director of the financial planning organisation ADDIDI Wealth, reported that this current years is seeing many more consumers work to restructure their finances after borrowing too heavily in the past.
Posted by Gemma Walker
