Second charge mortgage repossessions fell in Q4 2013 by 29.7% compared to 2012, figures from the Finance and Leasing Association reveal.

But throughout last year 7.6% more properties were taken into possession compared to 2012.

Fiona Hoyle, head of consumer finance at the FLA, said: “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.”

The Financial Conduct Authority will regulate second charge mortgages from April, while the Mortgage Directive launches in 2016.