Every Quote Is Free & Confidential  Second charge mortgage repossessions down by half |
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Video transcript
New data released by the Finance and Leasing Association, also known as the FLA, has highlighted a considerable reduction in the volume of second-charge mortgage repossessions across the UK in recent months.Relating to the first three months of 2016, the organisation showed that just 34 cases were recorded across the whole of the country.
This was a remarkable improvement year-on-year, with a 52 per cent cut in repossession activity from the opening quarter of 2015.
Responding to the latest set of impressive statistics for the sector, Fiona Hoyle, head of consumer and mortgage finance at the FLA, said that this latest dramatic fall in second-charge mortgage repossessions is `further demonstrating lenders` efforts to help customers in financial difficulty`.
She added that: `Second-charge lenders have more flexibility on how they can assist customers with repayment problems, now ... they are regulated by the FCA`s mortgage rules.
`The previous Consumer Credit Act regime was much more restrictive,` she concluded.
Indeed, the significant drop of more than 50 per cent in repossession numbers in the last 12 months echoes an ongoing strengthening of the second-charge mortgage sector that has been in effect for several years.
Overall, the FLA`s figures show that annual volume of repossessions totalled just 228 cases in 2015 as a whole - itself a 49 per cent reduction from the previous full year.
Dating back to 2008 - when records of this type were first recorded by the FLA - the sector has undergone a dramatic shift in levels of support for all those taking out second-charge mortgage loans, with more than 1,600 cases of repossessions witnessed that year.
Many might have expected the impact of the onset of the global economic downturn and the tightening of fiscal policy and austerity that ensued in the following years would have caused repossession numbers to rise. However, this was not the case, as the FLA`s data shows.
Year-on-year improvement in the total number of second-charge mortgage repossessions has been a feature of the last eight years, with 2016 now expected to be a continuation in this positive trend.
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