THE consumer magazine Your Mortgage has warned borrowers to protect their mortgage payments, despite reductions in repossession rates and arrears in the latest Council of Mortgage Lenders figures.

Repossessions and arrears are continuing to decrease as a result of historically low interest rates and the cheapest mortgages seen in the UK in 50 years. But rates are forecast to go up this year and the impact of 2001 redundancies is set to filter through to the market.

Both mortgage and non-mortgage debt is at an all-time high, which could compound the problem if more jobs are lost.

Paula John, editor of the magazine, said: "Only 21 per cent per cent of existing mortgage borrowers have mortgage payment protection insurance. Don't let today's figures make you complacent - get covered."