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With the demise of Lehman Brothers, the home loan market is in turmoil.

Lehman Brothers has been a bedrock of the world financial markets for over 100 years. Within the UK alone, it's tentacles spread into the secured loan and mortgage markets with ownership of several well know brands, SPML and Preffered Mortgages, not forgetting the defunct SPPL, a secured loan lender who closed their doors in late 2007.

In an already decreasing home loan market, this has increased the tension in an already nervous sector. Many lenders are unable to obtain the funding they either require or desire.This has led to a severe shortage of secured loan facilities, which in itself will not help the current problems facing the housing market.Liquidity is required, to have funds available when needed for joe public, to avert a meltdown of the housing market.

With many lenders restricting their criteria to the point where their acceptances are down by over 50%, it is a sign of a volatile and dangerous time, and one that will not abate until secured home loans become more freely available.

The current trend of secured loan lenders needs to change, applicants who 12 months ago were potentially good clients, probably still are, however until lenders, both mortgage and home loan , relax their criteria and make their products more accessible to more of the populus, then we will not see an end to this crisis.Simply reducing interest rates, will have an effect, but if only a few can take advantage of this, then it is simply not enough.The problem is greater within the Self Employed loan sector, which by many is seen as the precurser to the whole crisis.Several lenders are now no longer accepting self certification, which,in itself,is another problem which needs to be addressed.