August 21, 2009
Secured Loan Providers Predict Less Repossessions
New data shows that the number of properties taken into possession by second charge mortgage providers should fall by the end of 2009 as more people find options to save their home and keep them on track.
The Finance and Leasing Association found that repossessions by secured loan lenders grew by 1.7% over the last three months, compared with the same period in 2008, but the forecast for 2009 overall has been revised and it is now expected that the number of second charge mortgage possessions will fall by 3.2% compared with 2008.
In the second quarter, FLA members took possession of 421 properties – the FLA’s overall 2009 forecast is for 1,550 second charge possessions. The FLA says this low figure proves that secured loan lenders are taking to avoid taking possession when customers are in arrears with their second charge mortgage repayments.
Fiona Hoyle, head of consumer finance at the FLA, says: “Second charge lenders are making every effort to help customers in financial difficulties and to avoid taking possession and our figures are proof that this is working. But with rising unemployment, this type of support will become even more important. We would urge any homeowner who is worried about meeting their mortgage repayments to contact a professional immediately to discuss alternative repayment options.”
Secured loan repayments can cripple anyone – on top of first mortgage payments, credit card repayments, loan repayments and other day-to-day bills it can all get too much. But everyone in the UK first and second mortgage market are doing everything they can to make sure that people stay in their homes and find ways to repay their debts in a timely fashion.
So if you are struggling, get some help. There are many people out there – mortgage advisers, lenders, debt managers – who can help you explore all your options and help get you back on track.
SOURCE: FLA, 14/08/09
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