Government data showed a total of 27,530 mortgage repossession orders were made during the first three months of 2008, up 17 per cent from the same period a year ago.

The number of repossession claims – the first stage of the order process – was 16 per cent higher at 38,688 compared with the previous year. This is the highest number since 1992 when the UK was clawing its way out of the last recession.

Economists warned more rises in repossession actions were likely this year as risk-averse banks and building societies kept lending criteria tight while the credit crunch grips money markets.

Many home owners have faced significantly higher mortgage rates over recent months as the fixed loans taken out in the cheaper lending conditions of earlier years expire.

Liberal Democrat Treasury spokesman Vince Cable called on lenders to seek "all possible alternatives" before seeking a repossession order.

He said: "Repossession claims have skyrocketed since last year. Many families could well end up losing their homes in the months ahead.

"This Government must stop having vague discussions with mortgage lenders and instead clearly lay out the procedures which must be followed before a property can be repossessed.

"Repossession must only ever be a last resort. Lenders must seek all possible alternatives before taking such action."

The Citizens Advice Bureau, which has seen a 35 per cent increase in people facing mortgage arrears problems at the start of this year, also said lenders needed to do everything in their power to help out those struggling.

"This means treating borrowers in arrears fairly and sympathetically, and being willing to negotiate with borrowers in trouble," said its head of consumer policy, Sue Edwards.

The Council of Mortgage Lenders is forecasting that the number of actual repossessions this year will be 45,000, up from 27,100 last year. There were a total of nearly 76,000 during 1991, the height of the UK's last recession, with a total of 142,905 repossession orders during the year.

Housing Minister Caroline Flint yesterday said families facing repossession would get free legal help to avoid losing their homes.

Free legal advice and representation at county courts are part of the package to help prepare people for mortgage difficulties when fixed-rate deals end – leaving borrowers facing payment hikes.

But the move was attacked as "too little, too late" by the Tories.

Shadow Housing Minister Grant Shapps said: "We called on the Government to provide greater debt advice more than 18 months ago and in the last three months David Cameron has urged mortgage lenders to warn borrowers when cheap rates were coming to an end and to consider staggering rate rises.

"While we welcome the Government belatedly getting on board, it's too little too late and does nothing to help the 27,000 families who have already experienced repossession."