A fifth of borrowers are worried they may not be able to meet the cost of mortgage repayments over the next year, according to new figures.

The Financial Services Authority (FSA) has also found that nearly a quarter of borrowers who are currently in money trouble had no idea how they were going to afford the increasing costs.

FSA's director of financial capability Chris Pond, said: "Economic conditions are getting tougher, putting pressure on family finances."

"And for those who are really struggling, don't panic," he added. "Talk to your lender or get free, confidential debt advice."

Launching a £2 million advertising campaign, the FSA is especially focusing on homeowners whose fixed-rate or discount mortgages are coming to an end this year, stating that 1.4 million are due to finish on a short-term fixed-rate deal this year alone.

Research by Abbey Mortgages has revealed that if homeowners were given the chance of remortgaging, 58 per cent would be unsure of what sort of product to go for.

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