The world at present sits in the midst of a credit crunch which is affecting everything from the price of food to the rates on our credit cards.
As prices rise, many of us are now considering many aspects of our lives and evaluating the monetary implications of the weekly shop, how much fuel we put in our vehicles and the effect on payments for credit cards and mortgages.
Because of the credit crunch, experts are warning that the numbers of applications for mortgages and other financial services is sure to fall.
Indeed, statistics from the bank of England have shown that mortgage approvals are at their lowest level for over 15 years – with around 58,000 approved in April – nearly half the level of last year.
As lenders become choosier as to who they approve mortgages for, many are facing a struggle to finance potential moves and mortgages as the housing market feels the pinch of the credit crunch.
All of this negative news stemming from the credit crunch can be seen as affecting the attitudes of first time buyers – who face an uphill struggle just to get their foot on the first rung of the property ladder.
For even though house prices are seeing a steady slump, the rates of the loans required has spiralled in response to the credit crunch.
With a shortage of finances overall putting pressure on banks and lenders to raise rates, many are now being discouraged from buying and selling property as a result.
It is predicted that house prices may fall by more than 10% by the end of year, which could spell bad news for buyers and lenders.
