Although more people were at risk of having their homes repossessed than in 1992, the insurer said, many were yet to learn lessons from then.

At least four-fifths of homeowners, according to Axa, have no insurance to protect their income, and pay their mortgages, in the event of loss of job.

Axa’s Ian Mallon said: “It is surprising so few have plans to provide for themselves and their families, given how rapidly things can change.” When the economy faced collapse and interest rates hit 15 per cent between 1989 and 1992, hundreds of thousands of homeowners lost their homes.

Axa reminded that then almost 1.6 million struggled to pay the mortgage, but warned that the figure was higher now, although there are 2 million more mortgages.

In the boom years following Black Wednesday, lenders offered mortgage deals worth three or four times annual earnings.

But this, in addition to rising fuel and food prices, is heavily putting stress on homeowners, lamented Axa.

Meanwhile, supermarket chain ASDA is looking to boost the mortgage market as credit crisis forced lenders to a retreat.

Spokesperson Rebecca Liburd explained that the market needed improvement and that prompted the chain to consider coming in.

“We are considering a move into the mortgage market as we do not think the market is currently working well for many customers,” she said, adding that although the move was still at an early stage their aim was to provide a one-stop shop for a good deal. This would mean tying in the mortgage, home insurance, protection and other needs of consumers.

However, there were speculations that the chain was approached by three mortgage brokers that include Mortgage Force, based in Derby.