Second charge repossessions remain low

Second charge repossessions remain low

Released on 10 May 2012

Repossessions made by second-charge mortgage providers were down by 19.5%1 in Q1 2012 compared with Q1 2011, according to figures released today by the Finance & Leasing Association (FLA), the trade body for the second-charge mortgage market. In Q1 2012, FLA’s second-charge mortgage lenders repossessed 157 properties.

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

“Repossession levels for second charge mortgage lenders continue to fall as lenders help customers in financial difficulty to remain in their homes. If you are having trouble with repayments, please contact your lender to discuss your situation. Repossession remains the last resort only after all other measures have failed.”

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



















 % change on previous year







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


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Note to editors:

  1. The sample for Q1 2012 is different to previous quarters because of a change to second mortgage providers in FLA membership. On a same sample basis, the number of possessions fell in Q1 2012 by 7.1% compared with Q1 2011.
  2. 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.
  3. 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: M: 07810 374110

Helen Saxon, FLA

T: 020 7420 9664 E: M: 07918 766 993