Second-charge mortgage repossessions 37% lower in 2016

New figures released by the Finance & Leasing Association (FLA) show that the number of second charge mortgage repossessions was 144 in 2016, almost 37% lower than in 2015. In the final quarter of 2016, the number of repossessions was 39, up by 18% compared with the same quarter in 2015.

The rate of second-charge mortgage repossessions, as a percentage of average outstanding agreements, has fallen from 0.34% in 2009 to just 0.07% in 2016.

Commenting on the figures, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said “Supporting customers in financial difficulty remains a priority for the second charge mortgage market. This is reflected in the low number of repossessions reported in 2016.  We expect the number of second charge mortgage repossessions in 2017 to be at a similar level to 2016.”

Table 1:  The number of actual properties taken into possession by FLA second charge mortgage providers1

Time period	Number of possessions in the quarter	% change on the same quarter in the  previous year	Annual total	% change on the previous year
2008 Total   2009 Total   2010 Total   2011 Total   Q1 2012 Q2 2012 Q3 2012 Q4 2012   Q1 2013 Q2 2013 Q3 2013 Q4 2013   Q1 2014 Q2 2014 Q3 2014 Q4 2014   Q1 2015 Q2 2015 Q3 2015 Q4 2015   Q1 2016 Q2 2016 Q3 2016 Q4 2016	151 139 163 175   226 183 144 123   128 133 107 79   72 67 56 33   34 40 31 39	-22.6%2 -40.6%2 -25.9%2 -1.7%2   49.7%2 31.7%2 -11.7%2 -29.7%2   -43.4% -27.3% -25.7% -35.8%   -43.8% -49.6% -47.7% -58.2%   -52.8% -40.3% -44.6% 18.2%	1,612   1,467   864   827         628         676         447         228         144	-9.0%   -41.1%   -4.3%         -24.1%2         7.6%2         -33.9%         -49.0%         -36.8%

 

1. Possession proceedings arising from FLA members’ second charge mortgage books, which have led to actual possession by the second mortgage provider.
2. There were changes to the sample in Q1 2012 and Q1 2013 due to changes in FLA membership.