Second-charge mortgage repossessions fall by 50% in Q1 2017

New figures released today by the Finance & Leasing Association (FLA) show that the number of second-charge mortgage repossessions in Q1 2017 was 17 – down by 50% compared with the same quarter in 2016.

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

“The number of second-charge mortgage repossessions fell again in the first three months of this year, as lenders continued to support customers experiencing repayment difficulties.

“Together with the UK Cards Association and the University of Bristol, the FLA has launched Vulnerability: A Guide for Debt Collection, which sets out best practice for ensuring customers get prompt and practical help when they need it most.”

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

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 2016, FLA members provided £118 billion of new finance to UK businesses and households. £88 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2016.
3. Vulnerability: a guide for debt collection has been financed by the FLA and The UK Cards Association.
4. The guide can be downloaded from the FLA, The UK Cards Association, and the Personal Finance Research Centre