There is absolutely no suggestion that banks will stop lending to mortgage borrowers as a result of the global credit crunch.

Equifax pointed out that the scenario is highly unlikely because banks need to lend money in order to survive.

The ongoing global credit crunch has sparked fears among some borrowers that lenders will completely withdraw from the mortgage market.

However, Neil Munroe, director of external affairs at Equifax, highlighted the fact that banks need to lend to customers in order to make money.

"The banks still have an appetite to lend money, but it''s just a matter of who they lend money to," he said.

"Banks are not going to stop lending money; they have to lend money to make money, so they''ll continue to lend money but will just be a little more investigative when an application is being made to make sure that it''s the right person who''s going to repay them," continued Mr Munroe.

The Bank of England recently cut the base rate of interest to five per cent, with the majority of lenders passing on the saving.