The recent credit crunch, which brought down Northern Rock –Britain’s fifth biggest mortgager, has caused many banks and building societies to tighten lending and withdraw many of their most popular deals.

Many homeowners are worried about getting a good deal upon remortgaging after their fixed mortgages’ terms come to an end.

Francis Ghiloni, mform.co.uk's marketing and business development director, said: "Mortgage customers are undoubtedly facing challenging times, but they are not as bleak as is being painted.

"People coming off two, three and five-year fixed-rate deals will face higher monthly payments. However, they will have benefited from house price increases and that will have enabled them to build equity and to substantially improve their loan-to-value."

 Ghiloni then dismissed the doomsayers who predict a housing crash, saying: "Panic about the UK heading for a worse house price crash than the U.S. is unhelpful and speculative.”