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The recent credit crunch has not only prompted high-street lenders to tighten their lending criteria but, for the time being, has also put paid to 100% plus mortgages aimed at first-time buyers. However, first-time buyers are not the only casualties of the credit crackdown. The Financial Services Authority has voiced its fears that up to 1.4 million home-owners could struggle this year when their fixed-term mortgages expire; borrowers with a typical fixed-rate repayment mortgage of £200,000 could see monthly payments rising by as much as £200 once they revert to the standard variable rate. So with the onus firmly now on would-be borrowers to demonstrate that they are a sound financial prospect, a good credit track record is essential.

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