FLA hails drop in repossessions on second-charge mortgages

Date:Friday 12th November 2010
Author: Susanna Kavka

The Finance & Leasing Association (FLA) has published figures showing the number of repossessions among second-charge mortgage holders has dropped.

Fiona Hoyle, head of consumer finance at the industry body, pointed out this figure is especially encouraging at a time when there is so much economic uncertainty about.

The FLA revealed 212 second-charge mortgage properties were repossessed in the third quarter of 2010 - almost half the 411 recorded for the same period of 2009.

"The falling number of properties being repossessed shows that lenders are doing all they can to help customers with debt problems," said Ms Hoyle.

She stressed the significance of lenders making a distinction between first and second-charge mortgages, saying it could be "detrimental" to treat the two types of situation in the same way.

The FLA claims second-charge mortgages play an important role in the housing market, as they can be speedily arranged and allow people to cut the rate of interest being paid on another debt.