This equates to fewer than 1 in every 400 mortgages taken out during the year, with the number of repossessions holding firm in both the first and second halves of the year at around 13,500.
The CML had originally predicted there would be 30,000 repossessions in 2007, but the final figure actually came in at 27,100.
This pitched the repossession rate at less than half that experienced in the early 1990s, at 0.23 per cent.
Arrears have also improved. Fewer than half a per cent of all mortgages had accumulated arrears of more than six months at the end of 2007, returning the profile of arrears to virtually the same levels as in the first half of 2006.
The CML believes that the impact of payment shock is likely to be more muted than previously expected, thanks to the downward path that interest rates now appear likely to follow. However it stressed that there is no room for complacency.
"Lenders take their responsibilities to borrowers facing repayment difficulties very seriously, and many go to exceptional lengths to provide debt counselling, reschedule payments, extend loan terms, or in some circumstances even allow payment breaks," said CML director general, Michael Coogan.
"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.
"Anyone who thinks they might be heading into difficulty should contact their lender, as problems are easier to resolve if they are tackled at an early stage. Lenders want to avoid repossessions just as much as borrowers do."
