Mortgage borrowers less affected by credit crunch than expected

Commenting on arrears and possessions figures from the CML, Godfrey Blight, chairman of the Intermediary Mortgage Lenders Association (IMLA), said: "UK mortgage borrowers have been less affected by the fall-out of the credit crunch than some commentators had predicted, and it is reassuring that the number of customers falling into arrears and losing their homes remains below the projected levels. While some mortgage holders will struggle to meet higher mortgage payments, most of them will manage to do so and IMLA continues to believe that across the board credit quality remains good."

"For all the negative sentiment in the media, unemployment and interest rates remain low and people are taking the wise precaution of cutting back on discretionary expenditure. IMLA would echo the CML's comments, that any borrower facing potential payment problems should speak to their lender at an early stage, as that gives the best opportunity of finding a way to enable them to stay in their home."

"Looking at 2008 and beyond, we think that arrears and possessions will rise further, but not catastophically so, and will remain well below the peaks of the 1990s and some of the more speculative forecasts for this year."