Credit crunch will bite would-be home owners

With property prices already spiralling out of reach of most Islanders – the cost of a three-bedroom house reached £470,000 in December – Acorn Mortgages say that Islanders need to rethink their approach to lending and mortgages.

They say that would-be property buyers should not panic, but may have to spend longer shopping around to get the best deal.

Acorn director Steve Ryan said: ‘If you are thinking about getting your foot on the property ladder, you will probably find it harder than you would have done a couple of years ago.