FLA - Finance & Leasing Association

02/13/2020 | Press release | Distributed by Public on 02/13/2020 06:00

Second charge repossessions fall to a record low in 2019

13 February 2020

New figures released today by the Finance & Leasing Association (FLA) show that the number of second charge mortgage repossessions in Q4 2019 was 25, 10.7% lower than in Q4 2018. The annual total of repossessions in this market fell to a record low of 98 in 2019.

The rate of second charge mortgage repossessions (as a percentage of outstanding agreements) was 0.06% in the twelve months to December 2019.

Commenting on the figures, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said:

'Second charge mortgage providers are committed to helping consumers in financial difficulty, which is borne out by the low number of repossessions last year.

'Any customer worried about meeting payments should speak to their lender as soon as possible to find a solution.'

FLA Possessions

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

2012 Total

2013 Total

2014 Total

2015 Total

2016 Total

2017 Total

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

46

39

36

28

24

24

25

25

76.9%

-2.5%

2.9%

-26.3%

-47.8%

-38.5%

-30.6%

-10.7%

1,612

1,467

864

827

6282

676

447

228

144

139

149

98

-9.0%

-41.1%

-4.3%

-24.1%2

7.6%2

-33.9%

-49.0%

-36.8%

-3.5%

7.2%

-34.2%

  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.

Note to editors:

  1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.
  2. In 2019, FLA members provided £140 billion of new finance to UK businesses and households. £105 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2019.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.