It has also said that the government must find a way of encouraging lenders to allow only residential home owners to benefit from assistance (perhaps by reverting to a fixed rate affordable mortgage).
It has also said that speculators, armed with multi buy to let properties, should be allowed no such help or latitude.
Paul Holmes, Firstrung's operations director said: "In the US, which is undeniably experiencing a severe house price correction with national prices down 6 per cent this annum, there is a concerted movement with political lobbyists pleading with congress to assist homeowners facing repossession.
"The rise in repossessions in the US has been exponential in 2007. If the UK were to experience similar levels of repossessions, vis a vis number of households, then the CML estimates would in fact prove to be very conservative - the US is facing up to two million repossessions in 2008.
"The national media has given a lot of coverage on the estimations put forward by the CML, however, no resource appears to have offered up any solutions.
"With hundreds of thousands of mortgage customers facing the prospect of their initial mortgage offer rates coming to the end next month the knock on effect could be severe.
"If the CML figures are consistent with their previous estimates then they will naturally be underplaying the impact and the exposure so many have to their mortgage rates re-setting, once they come off their initial offer rates.
"Some estimates put these figures at 350,000 borrowers facing mortgage hikes of perhaps 2% in 2008. On an average mortgage of 150K this could prove catastrophic for mortgage holders already balancing household finances on a knife edge. Add this to those already experiencing problems and the picture is quite bleak."
