The number of mortgages in arrears continued to fall in the second quarter, reaching its lowest level since records began.
According to the Council of Mortgage Lenders (CML), at the end of June there were 92,500 mortgages in arrears of at least 2.5 per cent of the total mortgage outstanding - down from 95,900 at the end of March.
The number of mortgages in arrears was 13.4 per cent lower than the same time last year, when the total was at 106,800.
Fewer properties were repossessed in the second quarter, down to 1,900 from 2,100 in the first quarter, with a fall in both the number of owner-occupied and buy to let properties taken into possession falling.
CML said that if the current trends on repossession continue, the number of properties repossessed this year could be the lowest since 1982.
Jonathan Harris, director of mortgage broker Anderson Harris, said: "It is excellent news that the number of mortgages in arrears continues to fall and is at its lowest level in two decades.
"This reflects rock-bottom interest rates and improving employment figures, as well as lenders prepared to be flexible and show forbearance. This month's interest rate cut should provide further relief to those on variable rates, assuming lenders pass the reduction on in full."