The Financial Services Authority (FSA) released figures that showed that the number of borrowers who had fallen behind on their mortgage repayments in the fourth quarter of 2009 fell by four percent as the lower level of interest rates continued to assist borrowers in making their mortgage payments. By the end of the year, mortgage accounts in arrears (defined as owing at least 1.5 percent of the mortgage amount) totalled 378,000.

The number of new arrears registered during the quarter was down nine percent at 41,000 and the FSA report that the number has continued to decline through 2009 and the figure was 39 percent lower during the last quarter of 2009 as compared to the last quarter of 2008 when the Bank of England started to slash rates. New repossessions also fell to 11,800, the lowest figure since summer 2008.

Borrowers have benefited from the series of bank rate cuts by the Bank of England including the current historic low of 0.5 percent and have confounded predictions that had earlier suggested that both repossessions and arrears would reach record levels in 2009. As the government stepped up its efforts to encourage people to use mortgage advice websites, Housing Minister John Healey said "We've pulled out all the stops with government support to help people avoid losing their home. More than 330,000 families have had help and advice with their mortgages over the past year, which is one reason why repossessions are running at half the rate of the last recession.

"I would urge anyone facing money worries not to bury their head in the sand, but to go to our repossessions help website or call the National Debtline to get help in keeping their home."

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