A report out from The Financial Services Authority (FSA) has warned that around 2.3 million homeowners in the UK are set to face a serious battle with their loan repayments over the next twelve months.

This figure equates to one in five property owners and highlights the increasing financial difficulties facing cash-strapped families. The FSA regulator has said that they were “particularly concerned about a quarter of the people in the danger zone.”

The report revealed that after admitting their fears over mortgage repayments, homeowners were offered a number of options to help ease their financial status including seeking financial advise, re-mortgaging to a cheaper deal or doing nothing.

Almost 550,000 of those asked said they had done nothing about their concerns, even though it meant them risking losing their homes.

The regulators director of financial capability, Chris Pond said, “The tougher economic conditions are putting pressure on family finances. Families are being squeezed by the potentially fatal combination of inflation-busting rises in household bills and huge mortgages.”