The credit crunch certainly hit the UK housing market over the summer. Mortgage offers are down 40 percent. Lenders have suddenly woken up to the possibility of growing mortgage defaults. Check the full story out here.
The credit crunch has had a dramatic effect on the availability of mortgages with the number of mortgage products falling by 40% over the past three months as lenders reduce their product ranges.
Lenders have tightened terms and conditions including the percentage loan to value, as well as maximum income multiples and affordability calculations. But they have also cut out a large number of the more generous loan products especially in adverse credit, self certification and buy to let.