In the aftermath of the recent Northern Rock crisis many property experts are now warning of the risk of a 1990’s style property crash in the future, although they put the chances of this actually occurring at 10 percent. Whereas these same experts had previously predicted continued increases in property prices, this change of tact in property price predictions is due not only to the events at Northern Rock, but also due to what has happened recently in the sub-prime lending market in the

United States, as well as the seemingly endless increases seen in UK property prices.

However, Simon Rubinsohn, chief economist at the Royal Institution of Chartered surveyors told Reuters that while talk of a “crash” was legitimate and not irresponsible, homeowners were unlikely to see a repeat of the previous slump. Rubinsohn had previously predicted further increases in prices over the next 12 to 15 months, estimating growth of around 3 percent. Now, however, he is forecasting a flattening of prices across the same time period.

The huge increase in property prices seen throughout the UK over the past few years has made its share of the headlines – highlighting the need for more housing in the country. Property news and price forecasts have driven people towards making decisions regarding buying and selling their homes and investment properties and we are likely to see this new prediction change the property market yet again.

The number of people buying property to rent has already been subject to increase and these numbers are only likely to climb even higher in response to the latest news regarding the fall of property prices. Rubinsohn predicts London property will have the greatest likelihood of experiencing a drop in prices, claiming that were was a 20 percent chance of a decline in property prices in the City – possibly as much as 10 percent. As a result, many homeowners who have recently sold their properties are now hedging their bets on further price reductions, while in the meantime renting properties as they wait to purchase property at an even lower rate.

Renting accommodation allows these people who have recently sold their property to sample life in a new area, town or city. Furthermore, many people who have recently sold their property have been placing their profits into savings accounts in order to take advantage of high rates of interest currently on offer through banks – often generating a sizeable income while waiting for the perfect opportunity to reinvest in the property market.

If the drop in prices of property for sale in London and across the country does occur, it will also give hope to many people who have previously been out of reach of the property ladder as prices and deposits will be lower than before.

It can be a headache searching for the right mortgage. There are over 8500 mortgages on the market so it’s a tricky business. You might conduct a mortgage search on the internet, or via a large high street lender, or with a mortgage broker or advisor. Mortgage advisor can range from single individuals to large organisations with a number of advisors.

When you do conduct a mortgage search you will be asked a number of set questions. These are designed to help you and the lender, broker or advisor with you to find the mortgage that will be best suited to you and your circumstances.

In your mortgage search you will be asked whether you are a first-time buyer, whether you are moving home, or whether you are remortgaging your current home. Mortgages applicable to these circumstances can be very different. You will be asked about your income details; these may applicable to you as an individual, to the higher earner of a couple, or to a couple’s joint earnings. Multiples of earnings are used to determine what you might be able to borrow and 3.5 times the main salary is a standard amount.

When you carry out your mortgage search you will be asked about the property that you wish to mortgage. The lender will want to know its location and its value – you will need a proper valuation before you are lent the money for the mortgage.

These days there are crucial questions to answer in a mortgage search about what kind of mortgage you would like. There are a lot of different types, such as fixed, trackers, discounts, capped. Most are variable rates, but nowadays over 75% of mortgages issued are fixed rates, as people try and escape the variations that come with changes in the Bank of England’s base rate.

Another significant question in a mortgage search these days is concerning bad credit history and county court judgements. With recent problems surrounding sub-prime mortgages (those given to people with poor credit histories or exceptional circumstances) mortgage lenders are becoming more stringent than ever when before they lend money to people.

Depending on the answers you give to these questions your mortgage search will reveal a number of mortgages that are suitable for you. There is less choice in some circumstances – for example those with CCJs – and in those circumstances the mortgage applicant will probably end up paying a higher interest rate for their mortgage.

When you carry out a mortgage search with your advisor – wherever he/ she is from – you should be as honest as possible, as economies with the truth will only lead to difficulties further down the line, and that includes being honest with yourself about how much you can afford to borrow – and pay back.

It is probably wisest to carry out a mortgage search with a broker or an advisor as these people have access to the whole of the mortgage market, and they are doing it regularly so they know what’s available. In this way you will avoid a mortgage search restricted to just a few products (as from a high street lender) and you will not get caught up in a maze of confusion (possible if you did it yourself).