Fiona Hoyle (pictured), head of consumer and mortgage finance at the FLA, said the fall is a result of lenders continuing “to support customers experiencing repayment difficulties”.
“Together with the UK Cards Association and the University of Bristol, the FLA has launched Vulnerability: A Guide for Debt Collection, which sets out best practice for ensuring customers get prompt and practical help when they need it most,” she added.
Steve Pollard, head of business development at Smart Money says increased regulation in the sector is having an impact.
“In the three years since the regulator introduced the Mortgage Market Review and then the Mortgage Credit Directive, we’ve witnessed a sea change across the second charge industry which has now become much more professional in its approach and embraced the new and more stringent affordability checks,” he said.
“Generally when a client falls into arrears, it is either due to a lack of intent or lack of ability and barring some significant change in circumstance the affordability and stress tests should reduce the levels of those struggling on ability. Other key impacts will of course be that lenders are under increased scrutiny when it comes to forbearance measures when clients get into trouble. In addition an improving economy and lower unemployment will have played a key roll in lower repossessions figures”.