Second Charge Repossessions Fall in 2012

14 February 2013

Repossessions made by second-charge mortgage providers were down by 24.1%1 in 2012 compared with 2011, according to figures released today by the Finance & Leasing Association (FLA), the trade body for the second-charge mortgage market. In 2012, second-charge mortgage lenders repossessed 628 properties.

Fiona Hoyle, Head of Consumer Finance at the FLA, said: “2012 saw a further fall in the number of repossessions made by second-charge mortgage providers.  We expect repossessions in 2013 to be at a similar level to last year.  If customers are experiencing difficulties with meeting their repayments, they should contact their lender to discuss the situation.  As always, repossession is a measure of last resort used only after all other measures have failed.”

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

  Q1 Q2 Q3 Q4 Total
  2012   151 139 163 175 628
  2011   195 234 220 178 827
  % change on previous year   -22.6 -40.6 -25.9 -1.7 -24.1

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

Note to editors:

  1. The sample for 2012 is different to 2011 because of a change to second-charge mortgage providers in FLA membership. On a same sample basis, the number of possessions fell in 2012 by 11.1% compared with 2011.
  2. In 2012 FLA members provided approximately £76 billion of new finance to UK businesses and households.  Almost £55 billion of this was in the form of consumer credit, a third of all unsecured lending in the UK.
  3. 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.
  4. 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 visit or call the FLA press office on 020 7420 9664.

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