CHL sees arrears drop 40% from peak

CHL Mortgages has reported a 40% fall in the level of three-month arrears since arrears peaked in February 2009.

The figures from the specialist lender also show that there has been a 37% reduction in gross arrears from February 2009 to April this year.

CHL says that arrears are now back at the levels last seen in Q4 2008 and that it believes the trend for falling arrears will continue.

Bob Young, managing director at CHL, attributes the fall to decisions its taken over the last two years to manage its arrears, as well as the effect of the low interest rate environment.

He says: “That said we are not complacent and we are already changing our focus to deploy an exit strategy from accounts in receivership which will benefit our borrowers, employees and shareholders.”