Second charge mortgage repossessions edge upwards
The number of second charge mortgage repossessions increased in the first three months of this year, although rates remain at historically low levels.
Figures from the Finance and Leasing Association show that 46 properties were repossessed n the first quarter of 2018, after the borrower defaulted on a second charge mortgage. This is up from just 25 repossessions in the same period the year before.
However while this figure has almost doubled, the rate of repossessions (as a percentage of outstanding agreements) remains low, at just 0.09 per cent in the 12 months to March 2018.
FLA’s head of consumer and mortgage finance, Fiona Hoyle says: “This increase in second charge mortgage repossessions is from a low base. We expect the number of repossessions in this market to remain low in 2018 as a whole.”
Figures from the FLA show that repossessions reached a peak in 2011, when there were a total of 6,282 for the year. More recently there have been 136 repossessions during 2016, and 144 repossessions in 2015. Final figures for 2017 have yet to be published.
Source: Mortgage Strategy