– Jane King is an independent mortgage adviser at Ash-Ridge Asset Management. The views expressed are her own. –

In the current climate, we have the irony of property suddenly becoming more affordable and yet lending is down by 52 percent in the year to January. The commonly held view is that it is almost impossible to get a mortgage and many first-time buyers are still frustrated in their efforts to get on the ladder. But it’s not all doom and gloom.

Firstly, there are providers with funds who want to lend. What they don’t want is the sub-prime type of borrower that got many banks into trouble in the first place, and this is set to be the long term approach of many who decide to remain in this market. This will be good for future stability and something that should be encouraged.

Anyone seriously looking to purchase or remortgage should take independent advice from a properly qualified mortgage adviser (try www.impartial.co.uk). First meetings are usually free of charge.

For first-time buyers and key workers there are government-funded schemes available, which are not widely advertised but are incredibly popular. The criteria and flexibility have widened in recent times and the schemes now encompass many individuals who would not have qualified in the past.

For key workers such as policeman and nurses and other eligible groups there are Shared Equity Schemes whereby you purchase part of your property and rent the remaining portion.

Try your local housing association in the first instance - they will let you know what properties are available and will advise as to your eligibility. An independent mortgage adviser will have access to the lenders who provide the mortgages for these shared equity loans and will be able to find you the best deal for you. I cannot recommend these schemes highly enough and as new funding is often released in April, the timing could not be better. For information about housing associations try Directgov.

For borrowers looking to remortgage, they should compare their current lender’s offering before moving. With low interest rates, it’s often not worth moving lenders once arrangement, valuation and legal fees are taken into account. A good adviser will always make this comparison before recommending any alternative.

When you start looking you will find that, because of low interest rates, there are some great deals out there. If you have a hefty deposit or plenty of equity in your property then you can access some very competitive rates. For a list of some of the best deals go to moneyfacts.co.uk

Do not be tempted to consolidate debt and secure this against your property. This can seem like a good idea but needs careful thought. In today’s uncertain environment one option is to insure your mortgage payments against redundancy if you are eligible.

Although the government has offered limited help for those facing arrears, the details are still sketchy and will only cover interest payments. If you are facing repayment problems, always contact your lender as soon as you can, as it will have options available to you - it is not in the lender’s interest to repossess.

Do not assume that your usual High Street bank has all the answers - shop around, use the Internet and ask friends and colleagues for recommendations.

I believe that this situation will continue at least until the end of 2009 - the recovery will only start when consumers regain their confidence in the economy and are comfortable that their jobs are relatively safe.

This is a guest blog by Melanie Bien, director of independent mortgage broker Savills Private Finance. The opinions expressed are her own:

The Bank of England’s decision to cut rates by 1.5 percentage points to 3 per cent - the lowest level in 54 years - is a huge surprise and everyone was caught on the hop by this drastic reduction.

While on one level it is welcome news, particularly for those on base-rate trackers who will feel the full benefit straightaway, it is worrying on another: how bad have things got to necessitate this dramatic reduction?

The next inflation report from the Bank of England will be interesting reading. The reduction will not be an overnight solution to the problems in the mortgage market. But it will start to have a positive effect on the interbank rate - the rate banks pay to borrow money.

These rates have been much higher than base rate: three-month Libor is around 5.7 per cent, for example, explaining why new mortgage rates have been slow to fall. It is unlikely that lenders will reduce their standard variable rates (SVRs) by the full amount but with such a big rate reduction there will be pressure on them to pass on at least some of it, particularly those who passed on nothing after October’s half-point cut.

Those coming up to remortgage will be in for a shock if they think new rates will be much cheaper. A number of lenders - Lloyds TSB, Northern Rock and Woolwich - have pulled their trackers and are set to launch more expensive replacements. Abbey has already priced its trackers 50 basis points higher in anticipation of this reduction in base rate.

Lenders who have cheap trackers are likely to be flooded with applications, which will affect service levels. One way of controlling this is by raising rates and lenders are adopting a herd mentality, copying each other so no-one is left exposed with market-leading rates. Fixed-rate mortgages have started edging down and will continue to do so.

But while rates are falling on some products, criteria are tight and this will take some time to improve. The best mortgage rates are still available to those able to put down at least a 25 per cent deposit or who have this level of equity in their homes. First-time buyers without financial assistance from their parents will continue to struggle to get on the housing ladder.

It’s every houseowner’s worst nightmare - and it’s official now: more than a million households could fall into negative equity if the housing slump continues, the Bank of England said today.

Growing numbers of home owners could be forced to sell their properties at a loss, as the property downturn gathers pace and vendors run out of options.

The scope of the negative equity nightmare could be massive. The BoE said that a 15 percent drop in prices from their October 2007 peak would leave one in 10 homeowners with outstanding mortgage debt worth more than the value of their home. Earlier this week the Centre for Economics and Business research predicted  that the average cost of a UK home will fall up to 40,000 pounds by the end of 2009.

First-time buyers are among those hardest hit and buy-to-let landlords may fall behind on mortgage payments or may be forced to sell at a loss as lending dries up.

And if that’s not gloomy enough - two further sets of figures provided more bleak news for the housing market on Tuesday.

The Financial Services Authority said the number of home repossessions in the second quarter rose to 11,054 from 9,172 in the previous three months. And according to the Land Registry, the average price of a house in September was 168,814 pounds, down another 2.2 percent on the month, a far cry from around  200,000 pounds seen at the peak last summer.

How have you been affected by the downturn in the housing market? Have you even been affected by negative equity, either now or in the past?