Housing Minister Caroline Flint said the move was needed to prepare for mortgage difficulties when fixed-rate deals ended, leaving borrowers facing a payment hike.

But she played down comparisons with the recession of the early 1990s, when negative equity forced many out of their homes, insisting it was a precaution.

Free legal advice and representation at county courts across the country is part of a package of measures being announced by Ms Flint.

There will also be more specialist debt advice training for Citizens Advice Bureau staff and local authorities, work with lenders to ensure they offer more help to those facing difficulties and strengthened help from the National Housing Advice Service.

Ms Flint said: "We know that some borrowers are concerned about their mortgages as a result of the global credit crunch.

"Most lenders are now passing on interest rate cuts and we want to see the rest follow as soon as possible. But for the minority of owners who may need support and advice now, we want to ensure it is there for them in the right place and at the right time.

"It is important to recognise we are dealing with an entirely different situation in the market from what was experienced in the early 90s. The fundamentals of the housing market remain strong with high employment, low interest rates, and long-term demand for homes from first time buyers."

Figures last week showed four out of 10 mortgage lenders had so far failed to pass on last month's interest rate cut to their borrowers, despite Government appeals.