Second charge repossessions drop 37%

In Q4 of 2009, second-charge mortgage lenders repossessed 233 properties - a 37% drop compared to Q4 2008.

Figures released today by the Finance & Leasing Association, show overall almost 10% fewer properties in 2009 were repossessed than in 2008.  

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.

Fiona Hoyle, head of consumer Finance at the FLA, says: “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.”