Arrears figures 'low by historic standards'

The Intermediary Mortgage Lenders Association (IMLA) has responded to arrears figures published by the Council of Mortgage Lenders, stressing that the figures are "exceedingly low" by historic standards.

Accounts in arrears of 12 months or more fell in the first half of 2007, the association pointed out, while those less than 12 months in arrears rose only slightly.

Despite the number of repossessions going up in the first half of the year, the IMLA said we are "clearly not" witnessing a repeat of the 1991 recession given the "fundamental strength" of the British economy.

Fears that the UK housing market could be headed for a similar slump to that seen in the US were also dismissed.

Peter Williams, executive director of the IMLA, said: "There is some deterioration in the figures but they are still exceedingly low by historic standards. If we compare the number of mortgages 12 months or more in arrears with the same period of 1993, we find it is almost 11 times lower.

"Arrears have been fairly steady for the past few years and this tick-up takes arrears up to 2002 levels and possessions up to…1999 levels – a world away from the problems of the early 1990s."

Mr Williams admitted that any rise in arrears or repossessions is unwelcome for both borrowers and lenders, but stressed that the figures need to be kept in perspective.

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