13 February 2020
New figures released today by the Finance & Leasing Association (FLA) show that the number of second charge mortgage repossessions in Q4 2019 was 25, 10.7% lower than in Q4 2018. The annual total of repossessions in this market fell to a record low of 98 in 2019.
The rate of second charge mortgage repossessions (as a percentage of outstanding agreements) was 0.06% in the twelve months to December 2019.
Commenting on the figures, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said:
“Second charge mortgage providers are committed to helping consumers in financial difficulty, which is borne out by the low number of repossessions last year.
“Any customer worried about meeting payments should speak to their lender as soon as possible to find a solution.”
FLA Possessions
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
2012 Total
2013 Total
2014 Total
2015 Total
2016 Total
2017 Total
Q1 2018 Q2 2018 Q3 2018 Q4 2018
Q1 2019 Q2 2019 Q3 2019 Q4 2019
|
46 39 36 28
24 24 25 25 |
76.9% -2.5% 2.9% -26.3%
-47.8% -38.5% -30.6% -10.7%
|
1,612
1,467
864
827
6282
676
447
228
144
139
149
98 |
-9.0%
-41.1%
-4.3%
-24.1%2
7.6%2
-33.9%
-49.0%
-36.8%
-3.5%
7.2%
-34.2% |
- 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.
Note 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 2019, FLA members provided £140 billion of new finance to UK businesses and households. £105 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2019.
- For media enquiries, please contact the FLA press office on 020 7420 9656.