Second charge repossessions halve in Q1 2019

Figures from the trade body showed a 47.8 per cent drop in the number of repossessions compared to 46 in the same period last year.

The rate of second charge mortgage repossessions as a percentage of outstanding agreements was 0.08% in the twelve months to March 2019, the trade body said.

In the first three months of 2018 46 properties were repossessed by second charge lenders, a figure which has fallen for every quarter since.

The total number of repossessions has been hovering at around 140 since 2016 – well down on the recent high of 1,612 in 2008.

Similar level to 2018

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “Lenders are committed to helping customers in financial difficulty.

“Any customer worried about making payments should speak to their lender because the sooner contact is made, the easier it is to find a solution.

“We expect the number of possessions in 2019 to be at a similar level to 2018,” she added.

Last week the FLA revealed that the first three months of 2019 had seen a significant uptick in second charge lending with 6,500 deals completed worth £292m, up 25 per cent and 19 per cent respectively on the same period in 2018.