The number of second charge mortgage repossessions increased by 3.8% in the third quarter of the year compared with the same period last year, with second charge mortgage providers taking 220 properties into their possession.
The FLA forecasts fewer than 900 repossessions by second charge mortgage providers by the end of 2011.
Fiona Hoyle, Head of Consumer Finance at the FLA, said:
"Repossessions levels are similar to last year's, with a slight increase over the last two quarters, following seven quarters of falling repossessions levels.
"Lenders continue to work with their borrowers to sort out repayment plans and ensure that repossession remains the last resort."