According to figures released by the Finance & Leasing Association (FLA), repossessions were down 37% in the second quarter of 2012, compared to the same period a year earlier.
Second charge loans are taken out in addition to a standard mortgage, using the remaining equity in a property, and are often used to fund home improvements.
The FLA’s figures said that 147 properties were repossessed in the quarter, down from 234 last year and 157 in the first three months of 2012. The trade body predicts total repossessions for 2012 will be around 600-650, considerably lower than last 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.”
The Council of Mortgage Lenders released figures earlier today showing that the number of mortgage possessions in the whole market during this period had also fallen. Repossessions in the second quarter are estimated at around 8,500.
