Fall in second charge mortgage repossessions
Friday, 10 February 2012 10:43 AM
Second charge mortgage lenders repossessed 827 homes in 2011, according to the Finance & Leasing Association (FLA).
That was a 4.3 per cent fall on the 864 repossessions recorded in 2010 but this was due to a sharply lower total in the first three months of the year. The repossession rate has been rising each quarter since then and the total of 178 repossessions in the fourth quarter was up 11.3 per cent on a year ago.
The FLA currently expects 2012 to see slightly more repossessions than 2011. However, this will still be well down on levels recorded in 2008 and 2009.
Second charge mortgages are loans secured against a property that might be to pay for home improvements or just to raise cash.
The main repossession statistics published yesterday by the Council of Mortgage Lenders only cover first charge mortgages.
Fiona Hoyle, head of consumer finance at the FLA, said: "Repossession levels have fallen for the third consecutive year as lenders continue with forbearance measures aimed at helping customers in financial difficulty to remain in their homes.
"These measures have been shown to work, as total repossessions are 48.7% down in 2011 on the total in 2008."
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