Second charge mortgage repossessions down 40%

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  • 11/08/2016
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Second charge mortgage repossessions down 40%
The number of second charge mortgage repossessions has fallen 40% year-on-year in the second quarter of this year, according to figures from the Finance & Leasing Association (FLA).

Between April and June this year 40 remortgaged properties were taken into possession, compared with 67 in the same period last year.

The trend reflected a continuation of an overall fall in second charge mortgage repossessions in recent years, which saw levels down 49% between 2015 and 2014 alone, following similar falls in the years before.

By comparison, back in 2008 at the height of the financial crisis, 1,612 houses were claimed by FLA’s members. This had halved to 827 by 2011.

Head of consumer and mortgage finance Fiona Hoyle said: “Second-charge mortgage providers continued to support customers in financial difficulty in the second quarter of 2016, while meeting the demands arising from the implementation of new systems following the market’s move to the FCA’s mortgage regime in late March.”

Elsewhere, the Council of Mortgage Lenders (CML) reported the number of properties taken into possession from first charge mortgages also fell in the second quarter, to 1,900 (down from 2,100 in the first three months of the year).

The trade body said at the end of June there were 92,500 mortgages in arrears of at least 2.5% of the balance, accounting for just 0.84% of all mortgages, and down from 95,900 at the end of March.

It said if the present trend continues, the number of mortgaged property repossessions this year is on course to be the lowest since 1982 (when there were 6.5 million mortgages, compared to 11.1 million today).

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