Debt solutions help repossessions fall

Mortgage arrears and repossessions fell by five per cent in the third quarter of 2010, showing that many with homeowner debt are seeking debt solutions before their situation becomes a problem.

The figures from the Council of Mortgage Lenders (CML) show that 8,900 properties were taken from homeowners between June and September.

Possessions declined by 27 per cent over the last 12 months, thanks in part to the effectiveness of debt solutions.

The significant reduction in the level of mortgages in arrears reported by the CML is very encouraging with a reduction from 203,000 last year to 176,100 that have arrears of 2.5% or more of the outstanding balance at the end of September.

Debt advice specialist Kevin Still of Atlantic Financial Management says, "Debt advisers are putting more emphasis for clients to repay priority arrears like the mortgage, rent, council tax or utility bills.

In a similar timescale we have seen the number of homeowner clients coming to us with mortgage arrears drop from 21% of homeowners to just over 15% in September 2010."

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