If you are looking for a mortgage you should apply for it as quickly as you can as yesterday the Bank of England warned that their availability is likely to deteriorate over the next three months.

The credit crunch has meant that mortgage lenders have been far less likely to lend to each other, leading to a cut in the number of mortgages available.
Yesterday, First Direct, the Co-op Bank, Southern Pacific and Preferred Mortgages all announced they were suspending some mortgage offers. They claimed they were being swamped with demand after maintaining competitive rates for as long as they could. Most lenders have increased their rates recently by 0.2 per cent, despite the Bank of England's cuts in the base rate.

The number of mortgage products actually on offer has fallen by 20% over the past week, which means that people having to remortgage will need the advice of an independent mortgage broker now more than ever in order to find the best deal.

The situation is particularly tough for first-time buyers even although, paradoxically, the cost of homes has started to fall slightly in the past couple of months. Even so they will have to find larger deposits, perhaps as much as 15% as lenders have restricted their loan to value criteria.

If the Bank cuts interest rates by another 0.25 per cent next week, in the current climate, it is unlikely to be reflected in your mortgage repayments.