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The housing market is not being closed to first-time buyers despite the ‘credit crunch’, say experts.
Darren Cook, head of mortgages at Moneyfacts.co.uk, said the outlook for those looking to buy a home for the first time is not as bleak as it appears.He said lenders are still offering appropriate loans to those wanting to make an initial investment despite well-publicised fresh credit controls.
He said: “It’s not all doom and gloom for first-time buyers, it’s just that in the current mortgage market, they are not sure what is going to happen so they are being a bit prudent.”

Moneyfacts research showed 11 mortgage lenders have reduced their maximum loan-to-value available on mortgage products since December last year.

Although there are less 100 per cent mortgages on the market, this is evidence of lender prudence rather than the closing off of the market to first-time buyers, Mr Cook added.

Single men are shunning home buying but the number of couples buying houses is shooting up, figures say.
Research by John Charcol revealed the number of first-time purchases by couples grew from 45 per cent in 2006 to 50 per cent in 2007.Katie Tucker, technical manager for the firm’s website, Charcol.co.uk, said the number of men buying alone fell to match this shift, while the amount of women purchasing homes on their own remained stable.

Ms Tucker said: “Buying together is a very sensible choice in terms of affordability, not only for splitting the mortgage and the bills, but more cuddling up should save you on the heating.”

She added couples should rent first however, to make sure the decision to live together is watertight.
The Bank of England predicts demand for secured loans among British homeowners will rise in the first three months of 2008.

UK mortgage lenders are calling for tighter rules to stop mortgage fraud in the sale of new city centre flats.The Council of Mortgage Lenders (CML) says uncertain conditions in the property market could make it tempting for developers to offer deals like cash-back offers, inflating property values.

A CML publication said: “In recent years, discounts and incentives have had the effect of making the real value of new homes less than transparent. This is bad news for genuine buyers and lenders.
“Buyers may find themselves with a mortgage worth more than the property’s value, while lenders may find themselves exposed to fraud and the risk of loss.”

The CML also said developer incentives like free holidays, paying of legal fees and buying white goods were a cause for concern.

The CML is the trade association for the industry of mortgage lending.

Mortgage holders are being told to keep up payments and try to pay off early for a better retirement.
Mortgage experts John Charcol say by paying off mortgages at the same rate as before the recent drop in the base rate homeowners may settle up early with providers.Katie Tucker, spokesperson for John Charcol, said: “For many people, the mortgage is what dictates when you can retire.

“Paying it off even a few years early it can make a difference to your quality of life not only because of age, but because of the money you free up to spend on other things.”

Recent research from the independent mortgage group indicated more first-time buyers are moving in together as couples.

Tighter lending controls could end up helping out first-time buyers, according to one financial website.
Moneyfacts.co.uk says those looking to buy a home for the first time could end up benefiting from the current economic climate.
Bigger deposits or third party guarantees could now be needed for first-time buyers to get on the ladder.However, according to Darren Cook, head of mortgages at Moneyfacts.co.uk, this could end up helping to prevent them from over-committing themselves when buying.

He said: “I think lenders are still supporting first-time buyers, they’re possibly just being a little bit more prudent in how they advance their funds.”

Since December 2007 11 mortgage providers have slashed the amount of their maximum loans, say figures released by Moneyfacts.co.uk.

Anyone splashing out on expensive gifts for a loved one around Valentine’s Day should check their home insurance, one provider says.
Direct Line said jewellery is one of the most popular presents among UK lovebirds, who were predicted to spend about £467m on glittering gifts for the big day.
Andrew Lowe, head of the firm’s home insurance, said: “Insurance is probably the last thing on most people’s minds when they are showering their loved ones with gifts on Valentine’s Day.”Having the right cover in place could prevent heartache if the unthinkable happens and that precious item is lost or stolen.”

Direct Line also suggests people keep proof of purchase and photographs of their new items.

Credit Card fraud is increasingly viewed as a victimless crime, a security specialist claims.
Danny Harrison, an expert with protection firm CPP, says more people are seeing card fraud as a crime in which no party loses out.Levels of credit card fraud are high because conmen don’t think they are hurting anyone when doing it, he added.

He said: “Card fraud is moving more and more into becoming what’s viewed as a victimless crime because the fraudster sees it is the bank that pays, not the individual, and in the majority of cases that’s true.”

He said cardholders should take care where they keep their plastic and should contact banks immediately if they go missing.

The average British shopper splashes more than £70 on their lucky Valentine, according to research.Figures from PayPal show £71.25 is the average amount spent on presents for loved ones for February 14th, with 23m UK lovers stumping up a remarkable overall total of £1.6bn.

About 33 per cent of people buy gifts costing £50 to £99 - a number which shoots up to 44 per cent among 18 to 24-year-olds.

Almost a quarter or 22 per cent of people who responded to the PayPal survey said they would be willing to spend between £100 and £249 for the day.

Cristina Hoole, PayPal spokeswoman, said: “It would seem romance is far from dead as almost half of Brits are splashing out that massive £1.6 billion on their loved ones around Valentine’s Day.”

UK consumer confidence is taking a beating thanks to worries about the rate of inflation, a report says.

The latest consumer barometer from Lloyds TSB shows the number of people expecting interest rates to be higher rather than lower a year’s time went up by two per cent last month.

This is the first rise in six months, and the financial services provider says inflation concerns are fostering a culture of worry among consumers.

Trevor Williams, chief economist with Lloyds TSB Corporate Markets, says even interest rate cuts may not help allay fears.

He said: “As far as consumers are concerned, any respite granted in interest rates today will be short-lived. Even so, if we do see a cut, this will ease the burden of interest payments and as such will help boost economic activity.”

Landlords can look forward to a rosy 2008 as the rental market continues to grow, according to industry experts.

Stats published by Paragon Mortgages showed a 19.4 per cent increase in rents in 2007, with 8.1 per cent of it happening in the last three months of last year.

David Salisbury, chairman of the National Landlords’ Association, said: “The chances are in the coming months there will be increasing demand placed on the private-rented sector and well-managed portfolios can only serve to benefit both tenants and landlords alike.”

He added figures showing more than 25 per cent of landlords plan to expand their portfolios over the next five years were evidence of the sector’s success and sustainability.

Those holding equity in property may be able to take out homeowner loans secured against the house, according to Moneyfacts.