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Second-charge mortgage repossessions down over 50% in Q1 2016

12 May 2016

New figures released today by the Finance & Leasing Association (FLA) show that the number of second-charge mortgage repossessions in Q1 2016 was 34, down 52.8% on the same quarter in 2015.

Commenting on the figures, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said:

“The first quarter of this year saw another significant drop in second charge repossessions, further demonstrating lenders’ efforts to help customers in financial difficulty.

“Second charge lenders have more flexibility on how they can assist customers with repayment problems, now that they are regulated by the FCA’s mortgage rules. The previous Consumer Credit Act regime was much more restrictive.”

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

 

Time period

 

Number of possessions

in the quarter

 

 

% change on the same quarter in the

 previous year

 

Annual total

 

% change on the previous year

 

2008 Total

 

2009 Total

 

2010 Total

 

2011 Total

 

Q1 2012

Q2 2012

Q3 2012

Q4 2012

 

Q1 2013

Q2 2013

Q3 2013

Q4 2013

 

Q1 2014

Q2 2014

Q3 2014

Q4 2014

 

Q1 2015

Q2 2015

Q3 2015

Q4 2015

 

Q1 2016

 

 

 

 

 

 

 

 

 

 

151

139

163

175

 

226

183

144

123

 

128

133

107

79

 

72

67

56

33

 

34

 

 

 

 

 

 

 

 

 

 -22.6%2

-40.6%2

-25.9%2

-1.7%2

 

49.7%2

31.7%2

-11.7%2

-29.7%2

 

-43.4%

-27.3%

-25.7%

-35.8%

 

-43.8%

-49.6%

-47.7%

-58.2%

 

-52.8%

 1,612

 

1,467

 

864

 

827

 

 

 

 

628

 

 

 

 

676

 

 

 

 

447

 

 

 

 

228

 

 

 

 

 

-9.0%

 

-41.1%

 

-4.3%

 

 

 

 

-24.1%2

 

 

 

 

7.6%2

 

 

 

 

-33.9%

 

 

 

 

-49.0%

 

 

 

 

  1. Possession proceedings arising from FLA members’ second charge mortgage books, which have led to actual possession by the second mortgage provider.
  2. There were changes to the sample in Q1 2012 and Q1 2013 due to changes in FLA membership.

Notes to Editors

  1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.
  2. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £81 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK in 2015.