Secured loan repossessions halved.
Article by Paymex 13th Aug 2010 00:00
According to new figures from the Finance and Leasing Association (FLA), repossessions for secured loans, (also called second-charge mortgages), were down by 50% in the second quarter of 2010, compared with Q2 2009
Secured loan lenders repossessed 211 properties in the second quarter of 2010, which the FLA say is a reflection of the longer-term approach lenders are taking to helping borrowers in financial difficulties.
However, the FLA warned of the risks if, in the future, government cuts mean there is less support for borrowers facing financial difficulties.
Fiona Hoyle, Head of Consumer Finance at the FLA, said: “The figures show that lenders are making every effort to avoid possessing homes, but the Government could damage these efforts if it cuts funding to the mortgage rescue scheme. With uncertainty around unemployment levels, mortgage lenders are taking a long-term approach to recovering outstanding debt. The Government should adopt a similar approach to supporting home owners in difficulty.”
Baines and Ernst Ltd