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A combination of factors has helped keep mortgage arrears and possessions in check, despite the recession.
Lenders are showing forbearance to borrowers where customers are trying to resolve their payment problems and have a realistic chance of doing so.
Low interest rates are helping ensure that arrears grow less quickly, giving borrowers a better chance of getting back on track and lenders more scope to extend forbearance.
Government schemes are providing some help for borrowers in difficulty by promoting early communication between borrowers, lenders and debt advisers.
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The CML warned that while today's figures reflect the efforts being made to manage mortgage arrears and avoid possession if possible, there can be no complacency about the potential scale of future payment problems.
While the economy remains weak and with unemployment still growing, arrears and possessions are likely to rise in the second half of the year.
Today's figures mean that the total number of possessions in the first half of 2009 stands at 24,100, compared with CML's forecast for the whole year of 65,000.
CML's Head of Policy Jackie Bennett said: "With unemployment rising and the economy still weak, the outlook will remain challenging for the rest of this year and into 2010. But today's data shows that lenders are committed to helping borrowers manage their way through temporary payment problems and get their mortgage back on track over time, avoiding possession where possible.
"Clearly, low interest rates are also helping borrowers who are committed to working to resolve their arrears, paying what they can - and when they can - towards their mortgage, and maintaining good communication with their lender."
(GK/BMcC)
