Fiona Hoyle, Head of Consumer Finance at the FLA, said: "2012 saw a further fall in the number of repossessions made by second-charge mortgage providers.
"We expect repossessions in 2013 to be at a similar level to last year.
"If customers are experiencing difficulties with meeting their repayments, they should contact their lender to discuss the situation. As always, repossession is a measure of last resort used only after all other measures have failed."
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