Shopping around for deals 'can reduce the impact of credit crunch'

Shopping around for the best mortgage deals available to them can help consumers reduce the impact of the credit crunch on their finances, according to an expert.

Martyn Hocking, the editor of Which? Money, made the comment after research by the magazine found that 40 per cent of people are worried that the financial conditions will leave them in bad situation this year.

According to the Daily Telegraph, the study found that one in eight consumers feel they may not be able to make mortgage payments due to the credit crunch.

Mr Hocking told the newspaper: "Mortgage payments are often your largest monthly expense, so understandably some people are worried about them going up.

"There are a few simple steps you can take to reduce the impact. Most importantly, shop around and use an independent mortgage adviser."

Research on the credit crunch''s effect on the mortgage market has come after a study by Abbey found that one in ten first-time buyers are planning to put their plans to move on ice this year.

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