The number of homes being repossessed in the UK rose by 21 per cent in 2007, figures show.
According to the Council of Mortgage Lenders (CML), there were 27,100 properties repossessed during the year, up from 22,400 in 2006.
Last year's figure was the highest since 1999.
However, the figure was slightly lower than the 30,000 repossessions anticipated by the CML.
Looking ahead, the CML expects the number of repossessions to rise even further in 2008 as the credit crunch tightens.
Michael Coogan, CML director general, said: "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 for each particular borrower.
"But that is all the more reason to ensure that there is a fair and reasonable balance of responsibility between consumers themselves, their advisers and lenders, and the system of state support to ensure that home-ownership remains sustainable and that repossessions are minimised.
"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."
Government figures showed mortgage repossessions in England and Wales surged by an annual 6 per cent in the fourth quarter of 2007.
More than 75,000 homes were repossessed during the house price crash in 1991.
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