The Council of Mortgage Lenders (CML) has revised its prediction for the number of repossession this year in a move which is encouraging for homeowners.
This is according to Beccy Boden Wilks, spokesperson at the Money Advice Trust, who revealed that the statistics will not be "as stark as people first thought".
"Obviously the debtor will lose their home and some repossessed properties have to be sold at public auction so they don’t go for as high a value as they would have done on the open market," she continued.
Repossession is a last resort and often presents a no-win situation, Ms Boden Wilks stressed, which is why many lenders are now looking for workable solutions to help people remain in their homes.
The CML reported on June 22nd that it had decided to revise its prediction for the number of repossessions in 2009 from 75,000 to 65,000.
Furthermore, the CML expects around 360,000 mortgages to be in arrears by the end of the year – equivalent to around 2.5 per cent of total mortgages.