Second charge mortgages up 11% as repossessions remain low – FLA

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  • 08/11/2018
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Second charge mortgages up 11% as repossessions remain low – FLA
Second charge mortgage business rose 11% in September while repossessions remained low in the third quarter of 2018, data has shown.

 

There were 36 second charge mortgage repossessions between July and September, up 6% from the same period last year, according to the latest figures released by the Finance and Leasing Association (FLA).

The annual rate of second charge mortgage repossessions as a percentage of average outstanding agreements at the end of Q3 2018 was 0.09%.

 

Value and volume of second charge

Meanwhile, the value and volume of second charge mortgage new business both grew by 11% in September 2018, with 1,958 cases completed worth £89m.

In the third quarter of 2018, the value of second charge mortgage new business stood at £279m, while it reached £1.03bn over the 12 months to September.

In September, credit card and personal loan new business together grew by 4% compared with the same month in 2017, while retail store and online credit new business rose by 8%.

Fiona Hoyle, head of consumer and mortgage finance at the FLA (pictured), said September saw the second charge mortgage market report its strongest rate of new business volume growth since January, bringing it in line with expectations of single-digit growth in 2018 overall.

She added: “However, the latest figures show that the number of second charge mortgage repossessions remained low in the third quarter, and market expectations are for this to continue in the final quarter of 2018.

“If a customer is concerned about meeting payments they should speak to their lender as soon as possible to find a solution.”

 

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