News Column

Q4 2013 Sees Further Fall in Second Charge Mortgage Repossessions

February 13, 2014

LONDON, Feb. 13 -- The Finance and Leasing Association issued the following news release:

Figures released today by the Finance & Leasing Association (FLA) show second charge mortgage repossessions fell in Q4 2013 by 29.7%1 to 123, compared with the same quarter in 2012.

Overall in 2013, 676 properties were repossessed by second charge mortgage lenders, up 7.6%1 compared with 2012, but remaining low by historic standards.

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

"Second charge mortgages will be regulated by the Financial Conduct Authority from April and must comply with the Mortgage Directive when it is introduced in 2016. We hope the new rules governing the secured lending sector will facilitate closer collaboration between first and second charge mortgage lenders in repossession cases, to avoid the potential for duplicate court proceedings and costs for consumers who are already in financial difficulty.

"Based on responses from FLA second charge mortgage providers, we expect the number of repossessions in 2014 to be at a similar level to last year."

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

See table here:

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Source: Targeted News Service

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