Since the start of the credit crunch the price of properties has been considerably down on the prices at which homes were selling up to the end of 2006.

This had a considerable effect on the secured loan mortgage and remortgage sectors in particular.

Remortgages and secured loans are secured against the equity on a property, and when property prices fall this adversely shows in a fall in the number of people eligible for these home loan products.

In addition to property prices decreasing the number of secured loans and remortgages available, the underwriting criteria of mortgage and secured loan lenders tightened, further limiting the eligibility of many.

When house prices were constantly rising before the credit crisis underwriting in the mortgage market was also much more more lax than now.

There was ready availability of secured loans at 90% LTV , 95% LTV,100% and even the 125% equity plan whereby it was possible to borrow up to 25% more than the property was actually worth.

Similarly with mortgages and remortgaes it was possible to obtain a mortgage or a remortgage up to 100% of the property value.

The Northern Rock even advanced mortgages and remortgages up to 125% LTV.

This meant that apart from property prices continully rising, with underwriting and loan to values being very liberal, many more people up to three years ago were able to obtain a secured loan, mortgage or remortgage then than now.

On a 125% mortgage or remortgage, if a property was worth say £200,000 it was possible to add up to £50,000 to this value making it possible to obtain a mortgage or remortgage of up to £250,000.

Since the credit crunch secured loan lenders limited the maximum loan to value to 70% absolutely maximum for self employed applicants and 80% for those in full time employment.

At the same time loan to values became much more restricted in the mortgage and remortgage sectors with no products available at over 90% 90% It was even only a small percentage of mortgage lenders prepared to lend at over 80% LTV.

It became very difficult for would be first time buyers to get a foot on the housing ladder as loan to values became restricted to a maximum 75%.

Many simply could not possibly afford a 25% deposit. Even for a cheap property costing £100,000 a prospective buyer would need in the region of £28,000 for the deposit, legal fees, valuation fees etc.

Before the credit crunch 95% mortgages were in the market for first time buyers.

When one is buying a first property there is also the no small matter of carpets, flooring, furniture, lighting, bed linen, cutlery, etc. etc. to be taken into consideration.

Therefore to move into a first bought home you are talking about requiring well well over £30,000 which is a vast some of money for someone to save.

The underwriting being so much tighter coupled with the fall in property prices have had a cippling effect on the secured loan, mortgage and remortgage sectors.