News

Second charge mortgage repossessions fall again in 2011

Released on 9 February 2012

In 2011, second-charge mortgage lenders repossessed 827 properties, 4.3% down on 2010’s total, according to figures released today by the Finance & Leasing Association (FLA), the trade body for the second-charge mortgage market.

The number of second charge mortgage repossessions rose by 11.3% in the final quarter of the year compared with the same period last year, with second-charge mortgage providers taking 178 properties into their possession. But low levels of repossessions earlier in the year meant that the total for the year as a whole was down on 2010.

The FLA currently expects the number of repossessions in 2012 to be very slightly higher than in 2011.

Fiona Hoyle, Head of Consumer Finance at the FLA, said:

“Repossession levels have fallen for the third consecutive year as lenders continue with forbearance measures aimed at helping customers in financial difficulty to remain in their homes. These measures have been shown to work, as total repossessions are 48.7% down in 2011 on the total in 2008.

“Repossession remains the last resort if all other measures have failed. However, economic uncertainty persists and we may see this reflected in a slight rise in the number of repossessions in 2012.”

Table 1: The number of actual properties taken into possession by FLA second mortgage providers¹

1.        Possession proceedings arising from FLA members’ second mortgage books, which have led to actual possession by the second mortgage provider.

- ends -

Note to editors:

1. In November 2008, the FLA published Good Practice Guidelines for Second Charge Mortgages. The guidelines gave a commitment to help customers in difficulty by setting out the help that is available and committing lenders to consider each case on an individual basis, taking into account customers’ circumstances. The guidelines make clear that every effort will be made to come to an arrangement with customers in difficulty and that repossession is a last resort.
2. FLA members comply with the Pre Action Protocol introduced in 2008, as well as the additional requirements introduced by the OFT for second-charge lenders in possession cases in 2009. 

For further media information, please contact:

Russell Hamblin-Boone, FLA

T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110

Helen Saxon, FLA

T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993

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