Repossession is one in a thousand: CML

Statistics published from the CML showed there were 11,400 repossessions in the second quarter, 10 per cent less than the 12,700 in the first quarter of the year.

However this was 14 per cent more than the 10,000 repossessions in the second quarter of last year.

The CML's data also showed increased numbers of arrears of three months or more, with the number of three month or more cases standing at 270,400, or 2.43 per cent of mortgages at the end of June.

This is compared with 264,700 in the first quarter of the year and 152,700 in the same period last year.

Jackie Bennett, head of policy for the CML, warned while there was a modest deterioration in arrears levels in the second quarter, it was likely to increase in the second half of the year while unemployment was still on the up.

Meanwhile, the CML said the number of buy-to-let mortgages in more than three months arrears had fallen by 17 per cent over the last quarter.

Mike Gerrard, personal insolvency partner for chartered accountants Grant Thornton, said: "Steady interest rate cuts have clearly gone some way in helping struggling households keep up with their mortgage repayments but conditions in the housing and mortgage markets still remain challenging."

The news came as Bradford & Bingley announced a loss before tax of £160m during the first half of the year, as the group's balance sheet continues to be run down by the government.

The lender, which was taken into public ownership on 29 September last year, reported its tier one capital ratio for the period ended 30 June 2009 ended at 8.7 per cent, with no additional capital provided since the nationalisation.

In the interim statement Bradford & Bingley said it had reduced its lending balances from £42.2bn in the first half of last year to £40.3bn in the first six months of this year.