CML: 1.44% of mortgages are at least 3 months in arrears

The Council of Mortgage Lenders (CML) has revealed that 1.44 per cent of home loans were a minimum of three months in arrears, as at the end of September 2008.

This figure represents an increase on the 1.33 per cent of mortgages that were in arrears at the end of June, highlighting the need for borrowers who take out a self buildmortgage to ensure that they can afford the repayments.

A total of 168,000 mortgages were in arrears at the end of September was 168,000, up eight per cent on the 155,600 at the end of the June quarter.

CML director general Michael Coogan said that conditions in the wider economy point to a "worsening picture for mortgage arrears".

He urged lenders to ensure that "their response to borrowers is constructive and seeks to avoid repossession wherever other solutions can be found".

By the end of 2008, the number of households in arrears is likely to exceed the CML's previous forecast of 170,000.