As the current gloomy economic situation continues and looks as though it is likely to get worse before it gets better, the total number of home owner loans and mortgages in arrears in the UK has increased again, according to the latest figures from the Council of Mortgage Lenders (CML).

The report from the CML has shown that the total number of home owner loans currently with three months or more arrears, rose by 8 per cent over the three months to the end of September, to stand at a total of 168,000, compared with only 155,600 three months previously and the CML have said that the figure is likely to exceed their original forecast of 170,000 cases by the end of the year.

In line with arrears cases, the total number of homes being repossessed, due to a build up of arrears and defaults on home owner loans, has also increased by 12 per cent to 11,300 cases in the three months to the end of September, against 10,100 cases in the previous quarter.

Despite these figures, the CML have maintained their prediction of 45,000 repossession cases by the end of the year and have called on the Government to offer more support to home owners who are struggling to maintain their loan repayments.

Michael Coogan of the CML said “The CML and lenders are committed to ensuring that repossession is only ever a last resort. Most borrowers who face payment problems successfully keep their home by working with their lender – anyone worried about mortgage payments should contact their lender at the earliest opportunity, before arrears start to build up.

The Government has taken some helpful steps towards targeted support for some of the most vulnerable households, but with a worsening economy now needs to make it a priority to go further. Increased help with housing costs is needed for a wider range of borrowers facing unforeseen repayment difficulties where there would otherwise be little prospect of early improvement.”