Today

The great mortgage give-away is over. The credit crunch crisis is worsening and lenders are tightening their criteria.

Just six months ago it was possible to walk into a bank or building society, borrow up to six times your income and walk out with a loan for 125 percent of your home's real value. Now those days are gone, lenders are tightening their belts and it's becoming increasingly difficult to secure a mortgage deal.

First-time buyers are being hit hardest. These days a deposit for at least 25 per cent of the property value is needed to access the best mortgage deals. Some lenders still approve mortgages to those with much lower deposits, but this apparent generosity is reflected in the higher rate of interest they then charge.

The size of your deposit is key and the advice is to start saving.

Melanie Bien, a director of mortgage brokers Savills Private Finance, notes: "It is worth asking parents if they can help with a deposit, or club together to buy with friends or siblings to increase the deposit you have available.

"With house prices flat or even falling in some areas, there is less chance of being priced out of the market while you save up the deposit.”