FLA members provide over 80% of all second charge mortgages. In the first quarter of 2009 second charge lenders repossessed 373 properties out of an estimated 10,000 plus repossessions in total. This is very close to the level in the same quarter last year.
Despite the prevailing economic conditions second charge lenders have been able to maintain the low level of repossessions by taking a responsible and sympathetic approach to homeowners in debt. In November last year, 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.
Stephen Sklaroff, Director General of the Finance & Leasing Association, said: "Our figures show a continued low level of repossessions. Second charge lenders recognise the pressures that many people face in the midst of recession. It is to their credit that the number of repossessions has remained almost flat compared to the same period last year. Our Good Practice Guidelines will continue to help homeowners in difficulty."
