The Council of Mortgage Lenders (CML) has reported that the number of mortgages in arrears continued to fall in the second quarter of this year, and is now at its lowest level since records began more than 20 years ago.

At the end of June there were 92,500 mortgages in arrears of at least 2.5% of the balance (0.84% of the total), down from 95,900 at the end of March. The number of mortgages in arrears was 13.4% lower than a year ago, when the total stood at 106,800, and is now at its lowest level since the run of figures began in 1994.

The number of properties taken into possession also fell in the second quarter, to 1,900 (down from 2,100 in the first three months of the year). There was a decline in both the numbers of owner-occupied (1,300, down from 1,500) and buy-to-let (500, down from 700) properties taken into possession (all figures rounded to nearest hundred).

The CML said that if the present trend continues, the number of mortgaged property repossessions this year is on course to be the lowest since 1982 (when there were 6.5 million mortgages, compared to 11.1 million today).

A more detailed breakdown of the data shows that there was a fall in the number of borrowers in each band of arrears, apart from those owing more than 10% of the mortgage balance. The number in this category edged up from 23,500 to 23,700 – the same number as at the end of last year.

CML data also shows different patterns of arrears and possessions in the owner-occupied and buy-to-let mortgage markets. As before, arrears rates are higher among owner-occupiers than among buy-to-let landlords, while rates of possession are lower. This is because lenders try to avoid repossession wherever possible to help owner-occupiers recover from a temporary period of payment difficulty, but may move more quickly to protect their position on rental properties (as tenants move out) in the more commercial buy-to-let sector.

CML director general Paul Smee said: “Another welcome reduction in arrears and possessions shows that borrowers are continuing to prioritise their mortgage commitments and that lenders remain committed to helping them through a period of temporary difficulty, wherever possible. As ever, the key to success in dealing with any payment problems is to address them as soon as possible. Any borrowers anticipating difficulty in paying their mortgage should therefore speak to their lender at the earliest opportunity.”