The number of repossessions for the year accounted for just 0.3% of all mortgages in the UK.
For the fourth quarter of 2010, repossessions fell 11% on Q3 to 7,900 – the fifth consecutive quarterly drop. This was 26% down on the same period of 2009.
In addition, the CML revealed that arrears of 2.5% or more of the outstanding balance fell 13% on 2009 to 169,600 for the year. This accounted for 1.49% of all loans, the lowest share since Q3 2008. On a quarterly basis, arrears were down from 176,100 in Q3 and 196,000 for Q4 2009.
Mortgages three months or more in arrears totalled 239,600 at the end of 2010 (2.11% of all loans), having fallen steadily over the year from 270,900 at the end of 2009.
The repossession and arrears figures for 2010 were broadly in line with CML projections. However, it has forecast that 2011 will bring a slight increase to 40,000 repossessions and 180,000 mortgages in arrears.
It said that uncertainties remain, not only over interest rate rises, but the reduction in the rate that Support for Mortgage Interest is paid from 6.08% to 3.63%.
In addition, possession cases in Scotland could be impacted by changes to the court process, while the prices paid for properties bought under the mortgage rescue scheme will reduce.
Michael Coogan, director general of the CML, said: “Lenders are continuing to work hard to help their borrowers who face temporary financial difficulties.
“As the numbers clearly demonstrate, repossession is a last resort. Most people’s payment difficulties can be managed and controlled for a period until their circumstances improve.”
He added: “As we go through 2011, the number of people facing payment pressures may increase if interest rates rise and as a result of the spending cuts that have resulted in reductions in the level of public support available. We will be monitoring developments closely.”
Meanwhile, the latest Office of National Statistic (ONS) figures for mortgage possession actions in England and Wales showed that possession claims issued and those that lead to court orders remained relatively stable over 2010.
This followed a steep downward trend since the first half of 2008 after increasing from 2003.
The ONS revealed that the number of claims issued in Q4 2010 were 2% down year-on-year to 19,329.
Claims that lead to orders being issued totalled 14,847 in Q4 2010, up 3% on the previous quarter, but down 8% on the same period of 2009.
