Second charge repossessions remain low‏

 

Repossessions made by second-charge mortgage providers were down by 37.2%1 in Q2 2012 compared with Q2 2011, according to figures released today by the Finance & Leasing Association (FLA), the trade body for the second-charge mortgage market. In Q2 2012, medicine FLA’s second-charge mortgage lenders repossessed 147 properties.

The FLA has forecast that total repossessions made by second charge lenders in 2012 will be around 600-650 for the year.

Fiona Hoyle, Head of Consumer Finance at the FLA, said:

“Repossession levels for second charge mortgage lenders continue to fall as lenders do all they reasonably can to help customers in financial difficulty to remain in their homes. Due to forbearance by lenders, the FLA has now lowered its forecast for 2012 repossessions.

“But lenders recognise that the situation could change if the economic situation worsens. So if you are having trouble with repayments, please contact your lender to discuss your situation. Repossession remains the last resort only after all other reasonable measures have failed.”

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

Q1

Q2

Q3

Q4

Total

2012

157

147

2011

195

234

220

178

827

% change on previous year

-19.5

-37.2

 

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

 

 

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