Figures up until the end of Q3 2010 show a 22% year-on year reduction in gross arrears, over 30 days.
Expectations are that, by the end of 2010, CHL will have seen a 40% reduction in gross arrears since their peak in February last year.
The lender expects this trend to continue downward throughout 2011.
Other trends noticeable in CHL’s mortgage book are an overall improvement in the performance of those accounts where a receiver of rent has been appointed.
One in three receivers of rents cases have been repaired; Receiver of Rents such as Alder King and Touchstone collect the rental income from properties where the mortgage is in arrears and pay those monies direct to CHL.
Where appropriate, performing receiver of rents cases are handed back to the control of the borrower.
CHL has also seen a 30% decrease in impairment charges and anticipates a similar decrease over the next 12 months.
Bob Young, managing director at CHL Mortgages, says:
“Over the last few years we have seen a fundamental change in the CHL business whereby we are now 100% focused on managing our existing mortgage book and making sure it continues to perform as we want it to perform.
“This has borne fruit in terms of our decreasing impairment charges, which were already at comparatively low levels, and the fact that our losses will also be a small part of our overall book. We fully expect these trends to continue to move in the right direction through to the end of the year and beyond.”