The number of second charge mortgage repossessions increased by 1.7% in the second quarter of the year, the first year on year increase since the second quarter in 2009.
The FLA forecasts 900 repossessions for 2011.
Fiona Hoyle, head of consumer finance at the FLA, said: “Lenders continue to make every effort to avoid repossession by working with their customers to agree repayment plans.
“Although the second quarter saw a slight increase compared with last year, we are continuing to forecast a total for the year similar to last year.”