The current situation of the mortgage market in UK after being severely affected in 2007-08 ‘credit crunch’ reflects a financial crisis at a global level. Getting a cheap housing loan in such a situation is not an easy job. Whenever such a situation arises, no matter where in the world, it almost invariably causes increased strictness of lenders and higher mortgage interest rates besides many other things. This is what is called the ‘credit crunch’ where life becomes harder for those who are looking for easy mortgage options. For those having an adverse credit, things become even more difficult. Adverse credit mortgages can be very hard to secure. The story of the impact of the credit crunch on the UK mortgage market is clear from the situation of ‘Northern Rock’ (a British Bank) alone. A drop of more than 50% in the stock prices of mortgage banks was observed during the early part of the credit crunch making things even more difficult for those with adverse credit and looking for mortgage loans. You can certainly still go on to obtain a UK mortgage in spite of the prevailing financial crisis and your adverse credit in these times of global recession. And if you know the right way to go, you may just be lucky enough to get it. Before that, it’s crucial that you are aware of all the effects credit crunch has had on mortgage markets and which are preventing you from getting a cheap housing loan. The effects are increased rate of interests(relative to normal terms), increase in strictness of lending terms, and hike in mortgage arrangement fees and a high compulsory deposit (of total house value). And of course, the danger of getting your application rejected altogether is the foremost in the list. Recently, a significant increase has been noticed in the number of people with adverse credit history in UK. Many of these people have to face bankruptcies or at least default notices which have a huge negative effect on their credit history and hence in their ability to get a cheap housing loan. Basically, an adverse credit history is created at the first place due to failing in repaying loans of any form, including credit cars or mail orders. These defaults are recorded in your financial history and reflect as bad credit on your account. Does that mean it’s hard or almost impossible to get a mortgage in this situation? How do you get a cheap housing loan in times of the credit crunch, especially when adverse credit mortgages are a little too hard to secure? The good news is that with time, an incredible number of financial services have become available in the market and are competing against each other to serve you in one or the other way. So that means that getting adverse credit mortgages is still possible. Your first step, therefore in the condition as above is to start improving your credit score. As obvious as it sounds, many of us keep putting this off until situation is out of our hands. Start by getting a copy of your credit rating from a big credit agency like Equifax or Experian. And yes, if you find errors in your credit report feel free to let the organisation concerned know about it. You may even consider getting another credit card specially made for those with bad score. Start making small purchases with it and pay off your credit on it on time. By doing this, your credit score will begin to improve. Of course, above said solution is long term in nature and you may be requiring a quicker solution. You can easily find many companies which specialise in providing mortgage loans even if you have adverse credits. However, you may not like all the terms they make you follow.