Mortgage News
Second-charge repossessions drop 10% in 2009
Repossessions by second-charge mortgage lenders dropped by 10% in 2009, according to the Finance & Leasing Association (FLA).
In Q4 2009, second-charge mortgage lenders repossessed 233 properties, which was 37% lower than in Q4 2008.
Overall, second-charge mortgage lenders repossessed 1,458 properties in 2009, which was 9.2% down on 2008, and below its original forecast of 1,522.
However, the FLA has said repossessions may rise in 2010 due to the fragility of the UK’s emergence from recession and the continued high level of unemployment which will mean borrowers will continue to face financial difficulties.
Fiona Hoyle, head of consumer finance at the FLA, said: “Second charge lenders are doing all they can to help customers in financial difficulties and this is reflected in the low number of repossessions. But many people are still struggling with repayments and this looks set to continue during 2010. Repossession will remain a last resort.”
FLA members provide around 85% of all second-charge mortgages.
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