In the third quarter of 2009 second charge lenders repossessed 411 properties. This is 9.9% down on repossessions in the same quarter last year. But the prevailing economic conditions mean that many borrowers will continue to face difficulties in meeting their financial commitments.
FLA members provide around 85% of all second charge mortgages. These lenders take a responsible and sympathetic approach to homeowners in debt. They recognise that the recession is still having an effect and 2010 will be equally difficult for many people. But repossession will continue to be the last resort.
Stephen Sklaroff, director general of the Finance & Leasing Association, said: "Any reduction in repossessions is good news, but these are still very tough times with many homeowners struggling to keep up payments on loans, bills and other debts. The important thing is for lenders to continue to use the full range of options to help people in financial difficulty, with repossession as the last resort."
