Second-charge lenders repossess 50 per cent fewer homes

Sarah Davidson

August 12, 2010

Second-charge mortgage providers repossessed 211 properties in the second quarter of 2010, which is a reflection of the longer-term approach lenders are taking to helping borrowers in financial difficulties.

Repossession is the last resort after lenders have exhausted all other reasonable debt management and financial support options, including the Government’s schemes where appropriate.

However, the FLA warned of the risks if, in the future, government cuts mean there is less support for borrowers facing financial difficulties.

Fiona Hoyle, head of consumer finance at the FLA, said: “The figures show that lenders are making every effort to avoid possessing homes, but the Government could damage these efforts if it cuts funding to the mortgage rescue scheme.

“With uncertainty around unemployment levels, mortgage lenders are taking a long-term approach to recovering outstanding debt. The Government should adopt a similar approach to supporting home owners in difficulty.”

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