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Second charge mortgage repossessions fall to a record low

8 February 2018
New figures released today by the Finance & Leasing Association (FLA) show that the number of second charge mortgage repossessions in 2017 was 105, 27% lower than in 2016. In the final quarter of 2017, the number of repossessions was 27, down by almost 31% compared with the same period in 2016.
The rate of second charge mortgage repossessions, as a percentage of average outstanding agreements, has fallen from 0.34% in 2009 to just 0.06% in 2017.
Commenting on the figures, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said:
“Helping customers in financial difficulty to get back on track is a priority for the second charge mortgage market. This is reflected in the low number of repossessions reported in 2017.
“If customers think they may experience payment difficulties, they should contact their lender at an early stage to explore alternative options. The sooner contact is made, the easier it is to find a solution.”
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
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
128
133
107
79
72
67
56
33
34
40
31
39
19
36
23
27
-43.4%
-27.3%
-25.7%
-35.8%
-43.8%
-49.6%
-47.7%
-58.2%
-52.8%
-40.3%
-44.6%
18.2%
-44.1%
-10.0%
-25.8%
-30.8%
1,612
1,467
864
827
6282
676
447
228
144
105
-9.0%
-41.1%
-4.3%
-24.1%2
7.6%2
-33.9%
-49.0%
-36.8%
-27.1%
Possession proceedings arising from FLA members’ second charge mortgage books, which have led to actual possession by the second mortgage provider.There were changes to the sample in Q1 2012 and Q1 2013 due to changes in FLA membership.Notes to Editors
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.In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.

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