Second-charge repossessions almost halve
Second-charge mortgage providers repossessed 864 properties during 2010. The low number of repossessions is a reflection of the longer-term approach lenders are taking to helping borrowers in financial difficulties.
Commenting, Fiona Hoyle, head of consumer finance at the FLA, said: “The figures show that second-charge lenders are making every effort to avoid repossessing homes. Our members are also working closely with first-charge mortgage providers to avoid situations where both first and second-charge lenders are trying to repossess the same property, minimising legal costs for borrowers.
“Household income is likely to come under further pressure in 2011 if unemployment levels and interest rates rise. Homeowners need to think now about how they would manage if their monthly repayments increased and what changes they may need to make to their current budgets.
“If they think they may face problems, customers should speak to their lender as soon as possible. Early contact allows lenders and borrowers to work together to find an effective solution.”