Second charge mortgage repossessions fell in the final quarter of 2013 by 29.7% to 123, compared with the same quarter in 2012, according to figures released today by the Finance & Leasing Association (FLA).
Overall in 2013, 676 properties were repossessed by second charge mortgage lenders, up 7.6% compared with 2012, but remaining low by historic standards.
Fiona Hoyle, head of consumer finance at the FLA, said: “Second charge mortgages will be regulated by the Financial Conduct Authority from April and must comply with the Mortgage Directive when it is introduced in 2016.
“We hope the new rules governing the secured lending sector will facilitate closer collaboration between first and second charge mortgage lenders in repossession cases, to avoid the potential for duplicate court proceedings and costs for consumers who are already in financial difficulty.
“Based on responses from FLA second charge mortgage providers, we expect the number of repossessions in 2014 to be at a similar level to last year.”
