Director-General of the CML, Paul Smee, said of the drop in house repossessions "Mortgage repayment problems have stabilised against a current backdrop of stable employment and low interest rates. Despite current uncertainty in financial markets, we see no need to revise our forecasts. Anyone with debt worries should take advice and speak to their lender at the earliest opportunity, as most temporary financial problems can be resolved."

Figures also show that 18,100 loans to first time buyers were sold during June which was an increase of 24% from May. In all 46,700 loans were given to home movers in June which was an increase of 22% from May. Paul Smee went on to add "It is encouraging to see more house buyers surfacing."

Further hope for the housing market came as experts at Moneyfacts have found that the average five year fixed rate mortgage has now dropped below 5% for the first time since 1988. 

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