The United Kingdom's Council of Mortgage Lenders has reduced its forecast for foreclosures this year to 65,000 from 75,000.

The CML said it changed its forecast due to borrowers' significant benefits from lower interest rates, significant levels of forbearance being shown by lenders and the effect of government interventions.

"The raft of measures taken by the authorities have stabilized the economy and will sow the seeds for a recovery over time, including in the housing market," the CML said. "But the improvement is likely to be slow and drawn out, especially as the extensive fiscal, monetary and credit support measures are gradually unwound."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.