The figure from the Council of Mortgage Lenders is significantly below the group’s original forecast of 75,000, which was revised down twice to 48,000.

However, the CML predicts a sharp increase in repossessions and the number of people falling behind with their monthly mortgage payments this year.

It blamed uncertainty in the economy and possible interest rate rises putting additional pressure on households’ finances.

Charities and financial experts said it was “unacceptable” that so many people had lost their homes.

The Government claims schemes put in place to help borrowers in financial difficulty have helped 330,000 families stay in their homes. However, figures suggest only 92 families completed the Mortgage Rescue Scheme, where eligible families can either get an equity loan to reduce their mortgage, or sell their home and remain as tenants.

It comes as lenders are criticized for continuing to offer the best deals to those with a significant deposit.

Figures by personal finance website Moneyfacts suggested borrowers with deposits of just 5 per cent pay £4,728 more on an average two year fixed rate deal compared to those with a 25 per cent deposit. This is based on borrowers looking for a mortgage of £150,000.

The CML also revealed a sharp decline in the number of mortgages for landlords.

It said 93,000 buy-to-loans were approved last year, down 58 per cent on the previous year’s 222,700 and the lowest annual figure since 2001.