Lower interest rates and a raft of Government measures are helping more people beat the recession and hang on to their homes, latest figures show.
The Council of Mortgage Lenders cut its repossession forecast for 2009 to 65,000 from a near-record 75,000.
But the figure is still the highest since 1992 and nearly two-thirds higher than the 40,000 people who lost their homes in 2008.
The group said rising unemployment would lead to an estimated 360,000 people falling into mortgage
arrears of at least 2.5% of their outstanding debt during 2009.
Although its revised forecast is 15% lower than the previous one, the figure still represents a doubling in the 182,600 of homeowners who were in arrears of this level at the end of 2008.
But the CML said record low interest rates were making it easier for households who lost their incomes to keep up with their mortgage.
Meanwhile those who fall behind are doing so at a slower pace, allowing them more time to negotiate with their lenders.
At the same time, a range of Government and industry initiatives, such as improvements in support for mortgage interest and the Homeowner Mortgage Support scheme, under which people can defer up to 70% of their interest for up to two years, are helping people stay in their homes.
The figures were released as the Government announced that it will double from £750,000 to £1.5m the money set aside to give people who face losing their home free legal advice in court.
The service offers free on-the-spot legal help to people in England who are in court facing having their home repossessed or being evicted from rented accommodation.
These court desks have previously been funded through Legal Services, but the extra Government money has helped to double the number of desks in crown courts to cover all courts in England.
Housing Minister John Healy said: "It is real backstop help for those closest to the point of losing their home."
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