Repossessions have hit a record low, while mortgage arrears have tumbled.

The number of properties repossessed more than halved year-on-year in the second quarter of 2015.

According to the Council of Mortgage Lenders, there were 2,500 properties taken into possession in Q2, down from the 5,400 in the same quarter of 2014.

Of the 2,500, 1,800 were owner-occupied and 700 in the buy-to-let market.

The total number of borrowers with arrears equivalent to 2.5% or more of the outstanding balance was 106,400 in Q2 (0.96% of all mortgages), down 17.4 per cent annually from 128,900.

Of the 106,400 borrowers in serious arrears, 100,700 were owner-occupied and 5,700 were buy-to-let.

CML director general Paul Smee said of the falls: “This trend is very welcome. Low interest rates are acting as a significant support for home owners in general, and are likely to be helping to stave off low level arrears for stretched households in particular.”