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Why is everybody jumping up and down about mortgages being more difficult to get when that is exactly what should happen? After all, the problems have arisen because mortgages were too easy to get and now they are merely reverting to what should have happened all along. Interest rates are not that terrible anyway. A lot of people have very short memories. I have records that go back to 1990 when the mortgage rate was 15.4 per cent. There is no point bleating about it because what is happening now ought to happen and people should not use their homes as cash machines. What do others think? Harry Katz, Norwest Consultants, Middlesex.

Neil Johnson, Building Societies Association, London

Dear Harry,

The issue is not about whether it is easy or difficult to get a mortgage. It is in fact about if an applicant for a loan is able to afford that loan not just when it is taken out but into the future as well.

It is not in the interests of building societies to lend money to people who are unable to repay it. As a consequence, and to protect the interests of their savers who provide the majority of funding for building society lending, societies have always employed a cautious approach to lending.

This has seen them thoroughly assess the ability of an applicant to repay the loan not just at the time of application but in the future to ensure the loan is suitable for the borrower.

Despite the credit crunch, and the problems some lenders are experiencing, building societies are continuing to lend and aspirant mortgage borrowers are finding societies open for business.

To get their mortgage building society customers are going to have to demonstrate, as they always have, that they will be able to afford the loan.

Peter Williams, Intermediary Mortgage Lenders Association, London

Dear Harry,

We had an over-supply of finance and now we have an over-supply of distribution relative to the finance available.

We can probably all agree a correction was due to come but none of us could say quite when. The big problem is the transition of how we get from where we were to where we are and how much pain there is in that switch over.

While most people did not use their homes as cash machines some did and some of that group will now be under pressure. Imla is trying to work on several fronts here. We are contributing to discussions on how to ease the blockages in the capital markets and thus, in time, increase the flow of mortgage funds.

We are also looking to see how best we can manage through the difficulties that might arise in terms of arrears and possessions.

Alex Hammond, Kensington Mortgages, London

Dear Harry,

The circumstances surrounding the credit crunch may be extraordinary but, given the incredible increase in house prices in the last 15 years, a correction in the property market is only realistic.

In the long-term it will act as a reminder for many that while their property may increase in capital value, first and foremost, it is their home. This cannot be a bad thing.

Of course, for the time being, circumstances will be tougher for most people. The cost of credit is more expensive than the historic lows we have seen in recent years and so borrowers need to adjust the expectations they have of the rate they are able to afford on their mortgage and the amount they need to set aside for their monthly repayments.

While first-time buyers may benefit from falling prices they also need to save a greater deposit in order to do so as greater loan-to-value deals are few in number and priced at a premium.

Even in the current environment lenders like Kensington are able to offer products to meet the needs of prime, buy-to-let and self-cert customers. As we look beyond this market correction, it will be these lenders that lead the way into a new sustainable normality.

Richard Barker, Astra Mortgages, Peterborough

Dear Harry,

The current issues being experienced by many borrowers have resulted from a combination of factors including greater mortgage rates, more restrictive lending criteria, high levels of personal debt and house price deflation.

While some of these factors were unforeseen, for example the effects of the fall out from the US sub-prime crisis and the collapse of Northern Rock, it is fair to say both some borrowers and some lenders should share some of the blame for the current position.

Levels of personal debt in the UK are at record highs following years of easy and cheap credit – interest rates have been at historically low levels and aggressive marketing of credit cards and personal loans has resulted in a marked growth in unsecured borrowing.

Arguably, some lenders have been culpable of overstretching customers and lending them too much money. Lenders with less sophisticated affordability and risk models have allowed certain mortgage customers to borrow in excess of six-times their income, without due consideration of whether they could afford the repayments in the event of an economic downturn.

Moreover, a number of lenders including Northern Rock allowed individuals to borrow in excess of 100 per cent loan-to-value at relatively low interest rates and these customers will currently find it extremely difficult, if not impossible, to remortgage to a decent rate when their current deal expires.