LONDON (AFX) - UK mortgage repossession in the first half of 2001 fell 1.5 pct from the preceding half year and 15 pct from the same period a year ago, according to figures released by the Council of Mortgage Lenders. Defaults on mortgages also fell. The number of households with arrears of 3-6 months fell 5 pct from the second half of 2000 and 6 pct from the same period last year. Those with 6-12 months of arrears fell 9 pct from both the first and second halves of 2000. Meanwhile, households with arrears exceeding 12 months fell below the 20,000 mark for the first time since 1989 - representing a 7 pct fall from the second half of 2000 and a 14 pct drop from the same period last year. CML director general, Michael Coogan said low interest rates have continued to act as a cushion for people facing difficulties servicing their mortgages. "But in the current uncertain economic climate, it is hard to tell whether the next move in interest rates will be up or down. And if unemployment rises, more people could find themselves unable to pay their mortgage," he said.