Circumstances for homeowners 'better than last recession'

Conditions for those looking to get a loan are better than they were in the previous recession, the Council of Mortgage Lenders has said.

The body was commenting after the release of statistics showed 46,000 properties were taken into possession in 2009, with a further 188,330 loans finishing the year in arrears to the tune of 2.5% or more of the outstanding mortgage balance.

It noted that upward pressures were not as severe as originally expected, with a combination of low interest rates and a raft of government initiatives making the situation better.

However, the organisation did note that the economic revival of the country will play a massive role in determining what the final outcome will be for homeowners.

The CML recently announced its support of proposals outlined by the Treasury to extend the regulation of the Financial Services Authority to cover second-charge mortgages as well - a move that would see it come into line with the European Union.