Credit Crunch

This is starting to get a bit scary now. The first I heard about the credit crunch was when I was completing my mortgage back in January and there was talk of my bank being overwhelmed with mortgage applications as some offers where being withdrawn (and Northern Rock were spirralling out of control). This did not worry me unduely at the time, except that it held up my purchase. A bank making some really bad choices surely wouldnt mess things up too much!? Now this looks like things are going to change radically in the near future. Mortgages are being withdrawn and banks seem to be less inclined to lend. As I am appealing to first time buyers I hope that this will not have too detrimental affect on the price I hope to get.