"The low number of repossessions in the market shows that lenders are committed to helping those in financial difficulties. "
New figures released by the FLA show that the number of second charge repossessions in 2018 was 147, 8.1% higher than in 2017.
In the final quarter of 2018, the number of repossessions was 28, down by 26.3% compared to the same period in 2017.
The number of properties repossessed during the twelve months to December 2018 represents 0.09% of the number of outstanding agreements in that period.
Separate data from UK Finance shows that homeowner repossessions fell to their lowest level in nearly 40 years.
Its figures show that there were 4580 homeowner possessions in 2018, the lowest since 1980.
In Q4, 1,130 homeowner mortgaged properties were taken into possession, 3% fewer than in the same quarter of the previous year.
Additionally, the number of homeowner mortgages in arrears of 2.5% or more of the outstanding balance fell by 5% to 77,610.
The number of buy-to-let posssessions fell by 14% in Q4 and the number of buy-to-let mortgages in arrears remained unchanged.
Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “The low number of repossessions in the market shows that lenders are committed to helping those in financial difficulties. The sooner customers make contact, the easier it is to find a solution.”
Jackie Bennett, director of mortgages at UK Finance, commented: “Homeowner possessions reached their lowest level in almost 40 years in 2018, aided by a historically low interest rate environment and lenders showing continued flexibility when working with borrowers in financial difficulty.
“Mortgage arrears also remain at historically low levels, with the majority of borrowers continuing to repay their mortgages in full and on time each month."