The ongoing impact of the global credit crunch is having an affect on homeowners who are looking to re-mortgage their home, it has been suggested.

Personal finance website Moneyextra.com said that the average value of a property being re-mortgaged now stands at £256,868, an increase of 8.6 per cent from November 2006.

Robin Amlot, senior editor of the website, commented: "The sharp rise in property values of those re-mortgaging may be an indicator of how the credit crunch is extending beyond the traditionally vulnerable sectors of society."

He added that it appears "certain" that interest rates will fall over the next year, "we may have an uncomfortable journey getting there".

The website also pointed out that first-time buyers now have to find £48,000 to put down as a deposit on the average mortgage deal, twice the size of the average salary of someone in full-time employment.

Figures released today by the Council of Mortgage Lenders revealed that the amount of money providers are lending customers dropped by eight per cent between October and November this year, with the organisation commenting that it "clearly demonstrates the market slowdown has started".