Overall in 2013, 676 properties were repossessed by second charge mortgage lenders, up 7.6% compared with 2012, but remaining low by historic standards.
Commenting, Fiona Hoyle, Head of Consumer Finance at the FLA said:
“Second charge mortgages will be regulated by the Financial Conduct Authority from April and must comply with the Mortgage Directive when it is introduced in 2016. We hope the new rules governing the secured lending sector will facilitate closer collaboration between first and second charge mortgage lenders in repossession cases, to avoid the potential for duplicate court proceedings and costs for consumers who are already in financial difficulty.
“Based on responses from FLA second charge mortgage providers, we expect the number of repossessions in 2014 to be at a similar level to last year.”
