These elevated levels are broadly similar to those seen back in 2001, with the CML now forecasting that the momentum will slow a little over the course of the year, so that by the end of December the total repossessions are predicted to stand at roughly 19,000.
However this rise will be fairly modest when compared to past levels, though it does reflect a slight worsening in prospects due to higher interest rate expectations.
The number of mortgages falling more than six months behind on payments dropped by 8.5 per cent to just under 45,000 at the end of 2006, representing only 0.38 per cent of all mortgages, or 1 in 260.
The number of arrears over the short-term also fell to 59,100 cases, however this thought to rise over the next 12 months largely due to the soaring interest rates.
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In response to these figures, Peter Tutton, national debt policy officer for the Citizens Advice Bureau, commented: While nowhere near the repossessions crisis of the early 1990s, these figures are still cause for concern housing debt, including arrears on mortgages and secured loans, is one of the fastest growing problems in our debt caseload.
We see a lot of people who have taken on mortgages that stretch them to the absolute limit, and they are less likely to be cushioned from the impact of interest rate rises in the coming months we would urge anybody in arrears to talk to their lender and get independent advice as soon as possible.
In addition to these alarming figures, the CML also published the Repossession Risk Review, its bi-annual round up and analysis of trends and risks.
This showed that the arrears rate on buy-to-let mortgages has been consistently lower than on homebuyer mortgages since 1998, although the difference between them has somewhat narrowed.
It also shows that there are indeed regional differences, with London seeing the biggest amount of court action resulting from these arrears. Surprisingly though, there is less correlation between unsecured credit problems and mortgage arrears than might initially be expected remaining broadly stable over the past year.
Director general of the CML, Michael Coogan said: The arrears picture at the moment is fairly complex. On the one hand, the wave of problems caused by previous interest rate rises has now worked through so recently arrears levels have fallen. On the other, interest rates are rising again and payment shock may be an issue for some this year as their existing fixed or discounted deals expire.
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