The credit crunch, which has seen the US mortgage market crumble in the last six months, has finally hit the UK and things are not looking good for our mortgage market. Recently, most UK mortgage lenders announced that their rates are set to soar by more than 0.5 percent, with many pulling many of their mortgages, especially adverse credit mortgage products, at a few days notice. Some lenders are even rejecting new customers or moving away from an area completely.

But is there still a way to find a good adverse credit mortgage? Or is this the end of the road for borrowers with bad credit?

Of course not, the adverse credit mortgage market is still alive. Admittedly, its not the best time if you are looking for a good adverse credit mortgage as lenders are not taking too many risks these days. Lenders now have to limit their lending as they cannot afford to risk too many loans after losing so much money in the USA. This means adverse products, which are more dangerous for lenders, are the first products that are being scrapped. Many adverse lenders have stopped lending altogether and have seen massive job cuts as they wait for things to pick up in the global economy.

But with a good adviser, there is still hope for adverse borrowers.

A good adviser will still know where to look to find the best adverse credit mortgage for you. Lenders still know there are a lot of Brits out there with bad credit problems, and they still know there is plenty of money to be made from lending to historically risky customers. The adverse market has not disappeared - it has just got a little bit smaller.

Adverse deals are not the most competitive as naturally, lenders will demand a higher rate of interest on an adverse credit mortgage than on a prime deal. And now unfortunately, in the face of the credit crunch, rates are less competitive than they were a year ago. But as any good adviser will tell you, rates are not everything. Just because you will have to pay a little extra doesn't mean the mortgage will be a bad one, an adverse credit mortgage will still help you improve your credit rating and get you back on your feet. These loans will still give you some breathing space to begin sorting out your finances.

So get some advice and get ready to start searching for an adverse credit mortgage. Now more than ever it is crucial to reevaluate your income and outgoings, write everything down and know exactly how much you can afford. Look at your credit rating to see how adverse you are, you may be surprised with what you find.

Aside from this, the most important thing when searching for an adverse credit mortgage is not to worry, with the right adviser you will always find a lender who will offer you a mortgage. It may not be as competitive as it once was, but the adverse mortgage market is still thriving and will be able to help you move onwards and upwards.