I think you need to ask yourself why you allowed yourself to fail, really why, and if it will happen again. You knew you had to pass the first year, and to be honest most people do the minimum possible to pass in the first year, but you didn't even do that. I didn't work that hard up to Christmas, didn't have wonderful attendance, and had various issues going on, but I still managed good passes in both modules (and this was Biological Science, not something easy). To be honest, unless it's a really tough subject at a really tough University then I think it takes some effort to fail the first year. Not handing in assignments is asking for trouble. Ok, you were enjoying yourself in the first year, but so are most people, but the difference is that most people will get their heads down even if it's the night before something needs handing in, or a week or two before the exams (I know a lot of people who spent their time at home for Christmas revising). If you can't even do that now, what is to say you'll do it next year?
To be honest, my advice would probably be to try as hard as possible for the rest of the year and then see what happens. If you can't do that then the best thing is to drop out, get a job, and then try again when you have some more maturity. From experiance with people I know, including a few on my course, most people who start again the next year because they were too lazy end up failing again as they are still too lazy. On the other hand those who leave it a couple of years before trying again tend to do very well as they are different people. Actually, I know someone who was kicked out of University for poor attendance, got a job working for the RSPCA and then went back to Uni to become a Vet. The extra few years maturity, and the realisation about what they wanted to do (they were doing Biochem originally but didn't have any career ideas), made all the difference.