Low interest rates have kept the level of UK mortgage arrears and home repossessions steady, according to the Council of Mortgage Lenders (CML). It reported that a total of 9,000 homes were repossessed in the second quarter of the year – 100 fewer than in the previous three months.

The CML has predicted that a total of 40,000 people will lose their homes this year, up from 36,300 in 2010. It said its view remained unchanged despite turbulence in the markets.

The Bank of England has held its Bank rate at 0.5% – a record low – for more than two years. This has assisted mortgage holders who may have faced difficulty in keeping up with their monthly payments otherwise during a period out of work or as they face other financial pressures, such as rising energy bills.

The total number of mortgages in arrears was broadly unchanged in the second quarter of the year, the CML figures show. The number of mortgages in arrears of between 1.5% and 2.5% of the outstanding balance edged up from 77,800 in the first three months of the year to 78,500 in the second quarter.

Those in arrears of more than 2.5% of the balance declined from 166,700 to 164,500 over the same period. The number of householders who have lost their homes owing to mortgage payment difficulties was 7% lower in the first half of 2011 compared with the first half of 2010, and 28% down on the first half of 2009.

“Mortgage repayment problems have stabilised against a current backdrop of stable employment and low interest rates,” said CML director general Paul Smee.