Second Charge Repossessions Remain Low in Q3

Online, November 14, 2011 (Newswire.com) - The total number of second charge mortgage repossessions so far this year is 649, 7.8% lower than in the same period in 2010, according to figures released today by the Finance & Leasing Association (FLA).

The number of second charge mortgage repossessions increased by 3.8% in the third quarter of the year compared with the same period last year, with second charge mortgage providers taking 220 properties into their possession.

The FLA forecasts fewer than 900 repossessions by second charge mortgage providers by the end of 2011.

Fiona Hoyle, Head of Consumer Finance at the FLA, said:

"Repossessions levels are similar to last year's, with a slight increase over the last two quarters, following seven quarters of falling repossessions levels. Lenders continue to work with their borrowers to sort out repayment plans and ensure that repossession remains the last resort."

1. Possession proceedings arising from FLA members' second mortgage books, which have led to actual possession by the second mortgage provider.

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Note to editors:

In November 2008, the FLA published Good Practice Guidelines for Second Charge Mortgages. The guidelines gave a commitment to help customers in difficulty by setting out the help that is available and committing lenders to consider each case on an individual basis, taking into account customers' circumstances. The guidelines make clear that every effort will be made to come to an arrangement with customers in difficulty and that repossession is a last resort.

FLA members comply with the Pre Action Protocol introduced in 2008, as well as the additional requirements introduced by the OFT for second-charge lenders in possession cases in 2009.
For further media information, please contact:

Russell Hamblin-Boone, FLA

T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110

Helen Saxon, FLA

T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993