Well-established broker Greenhill Finance claims thatdespite the so-called 'credit crunch' plenty of borrowing options remain opento people with their own homes

What's in a phrase? When the phrase is 'credit crunch' a lot it seems.

With household debt in Britain now running atthe highest level ever recorded, more and more people are finding it harder toborrow.

Recent figures show that families in the UK now owe a record 173 per centmore than they earn, a massive 44 per cent increase on just five years ago andthe highest of all the G8 developed countries.

Placedagainst the current background of falling house prices (an overall drop so farthis year of 6.3 per cent), reduced mortgage products (down two thirds on lastyear) and rising interest rates, the problem of 'bad debt' is worsening by theday. But is the situation really so negative and as gloomy as It Is beingpainted?

Financebroker Greenhill Finance of Sandbach, Cheshire, insists that thepresent 'crisis' is not only not as bad as it is being portrayed but also thatthere are still sensible and responsible options for homeowners in needfinding it difficult to identify sources of finance through traditional routesbecause of a poor credit record.

GreenhillFinance, a company that has been arranging secured loans and mortgages foralmost 20 years, points out that thespectre of negative equity is still pretty remote for the majority ofhouseowners. The BBC programme 'Truth About Property' found in a recent surveythat that the average houseowner still had some ?167,000 of equity in theirproperty.

So is the much heraldedrecession really only a well overdue market slow-down? David Reid, senior advisor at Greenhill Finance,thinks so.

He says (14 July 2008):'Today's market has been over-inflated due to a number of reasons, principallythe ease of getting credit, better selling estate agents, and low interestrates. The result of this was that more and more money became available,pushing prices up. Now the credit crunch means those easy mortgages arenowhere to be seen and we are seeing truer prices.

'Things are only worth whatpeople are willing to pay for them. I'm not sure a recession is on the way butcertainly there will be an adjusting of what people's estate is worth. It wasalways going to happen. Things were never going to carry on they way they were.

'But with the stiffening ofhouse prices many more people are going to stay put and invest what they can inmaking their homes nicer through re-mortgaging or taking out secured loans. Forthe most part homeowners have done very well from property, and probably stillwill.'

Forpeople whose homes are still worth more than they paid for them GreenhillFinance offers to help select the best secured loan and have the money in yourbank within 21 days.

But the company points out that all loans and mortgages are securedagainst property and therefore applicants should think carefully beforesecuring other debts against their home. Homes may be repossessed if repaymentsare not kept up on a mortgage or any other debt secured on it.

Formore information call 0800 916 4148 and ask to speak to an adviser orvisit .