Despite repossessions reaching an eight-year high of 27,100 in 2007, the CML admitted that its forecast had been significantly higher at 30,000.
As a result, less than one in 400 mortgages actually led to repossessions.
However, Michael Coogan director-general at the CML, admitted that he expected repossessions to rise in 2008.
He said: “Lenders take their responsibilities to borrowers facing repayment difficulties very seriously and many go to exceptional lengths to provide debt counseling, reschedule payments, extend loan terms, or in some circumstances even allow payment breaks.
“Despite this, the number of repossessions is likely to be higher in 2008 as a result of wider issues in the economy and the mortgage funding markets. No one is necessarily to blame for this – even the best risk assessment cannot provide a crystal ball insight to the future.”
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, agreed: “The more challenging climate for the housing market will lead to a rise in repossessions over the course of 2008.
However, timely action by the Bank should help offset some of the pain being felt by home owners resulting from the credit crunch and the reset of fixed rate mortgages that are now due for renewal.
"Significantly, more relief is likely over the coming months as rates continue to be lowered.”
Richard Farr, director of the Association of Mortgage Intermediaries, added: “News that the number of repossessions was lower last year than previous predictions is very positive for all.”
