Second charge repossessions down
In the final quarter of 2009, second-charge mortgage lenders repossessed 233 properties, which was 37% lower than in the same period a year earlier. The Q4 figure means that second-charge mortgage lenders repossessed 1,458 properties in 2009, 9.2% down on 2008, and below than the FLA’s original forecast of 1,522.
The fragility of the UK’s emergence from recession, and the continued high level of unemployment mean many borrowers continue to face difficulties in meeting their financial commitments. This could mean a rise in the number of repossessions in 2010.
Fiona Hoyle, head of consumer finance at the FLA, said: “Second charge lenders are doing all they can to help customers in financial difficulties and this is reflected in the low number of repossessions. But many people are still struggling with repayments and this looks set to continue during 2010. Repossession will remain a last resort.
“The small number of properties repossessed shows that the current regulation is working well – lenders are able to lend responsibly and keep repossessions low. We still remain to be convinced that Government proposals for transferring regulatory responsibility from the Office of Fair Trading to the Financial Services Authority are needed.”