Finance & Leasing Association12 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%
|
- Possession proceedings arising from FLA members’ second charge mortgage books, which have led to actual possession by the second mortgage provider.
- There were changes to the sample in Q1 2012 and Q1 2013 due to changes in FLA membership.
Notes to Editors
- 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.
- 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.
