The mortgage arrears rate in the third quarter of 2016 remained at 0.84% of all loans, according to the Council of Mortgage Lenders, exactly the same level as in the second quarter.

The number of mortgages in arrears ticked up slightly from 92,500 to 93,300 as the total number of mortgages rose, but the proportion in arrears of 2.5% of the loan amount or more remained the same.

This continues to represent the lowest arrears rate for over 20 years.

Repossessions static

The overall repossession rate also remained the same in the third quarter as the second quarter, at 0.02%, representing 1,900 mortgages (of which 1,300 were owner-occupier, 600 buy-to-let).

While the proportion of borrowers with low levels of arrears continues to fall there was a marginal rise in mortgages in arrears of 10% of the property’s value or more, increasing from 22,800 to 24,000.

CML director general Paul Smee said: “The latest arrears and repossession data still paints a reassuring picture of a market in which financial difficulties are relatively rare, and repossession rarer still. However, there is no denying that economic uncertainty for households is increasing. We would strongly urge all mortgage holders to consider whether there are ways that they can plan ahead for possible changes in the future – whether this relates to employment prospects, mortgage payments, or other spending.

“Mortgage lenders are fully committed to ensuring that any home-owner who faces temporary financial difficulty gets help, as far as reasonably possible, to resolve it and to remain in their home. This will continue, whatever the economic climate. But the rise in the more serious arrears category perhaps suggests that we should not be entirely surprised if the number of mortgage repossessions rises a little in future reporting periods.”