4 Home Loans

Tightening credit should not make it impossible to get into a new home.So says Darren Cook, head of mortgages at Moneyfacts.co.uk. First time buyers are not as bad off as some may think.

It is still possible to find a lender to help with that first-time investment in property, he says.

First-time buyers seem to be very cautious in light of the uncertainty caused by current market and credit conditions, according to Mr. Cook.

In the past two months, 11 mortgage lenders have lowered their maximum loan-to-value on offer for mortgage products.

Mr. Cook believes that lenders, too, are taking more precautions so it is more difficult to find a loan for 100 percent of the property’s value. Still, there are plenty of opportunities for first-time buyers hoping to buy a home.

New data shows the number of couples buying homes increased last year.According to mortgage broker John Charcol, 50 percent of first-time purchases were made by couples last year, compared to 45 percent in 2006.

The number of women purchasing homes on their own remained relatively static, but the number of men buying solo dropped, says Katie Tucker, technical manager Charcol.co.uk, the firm’s web site.

Ms. Tucker sees a number of advantages in purchasing as a couple. It is possible to share the cost of the mortgage and other household bills, and snuggling might just help to reduce heating bills.

She does not recommend that couples jump into home ownership, however. Rent first to make sure the decision to pair up is a good one.

More Britons are expected to seek secured loans in the first quarter of 2008, according to the Bank of England.

One security expert says many believe that fraudulent expenditures on credit cards do not involve a victim.More and more people fail to see a losing party in cases of credit card fraud, according to Danny Harrison, a security expert with protection firm CPP.

People who commit credit card fraud do not believe they are harming anyone, leading to higher levels of the crime, he says.

Because the bank, and not an individual, suffers the loss, an increasing number of people believe there is no victim to their crime, says Mr. Harrison.

He warns consumers to take care of their credit cards and report any lost or stolen card to their provider immediately.

People facing difficult financial issues may find a solution in a debt consolidation loan, according to Iain Wrenshall, director of Debt Help UK.

An expensive Valentine’s Day gift should be protected with good insurance coverage, and some people may need to re-evaluate their coverage, according to one report.People like glitzy gifts, and Britons are set to spend nearly £467 million on jewelry this year.

Few people think about insurance when they bestow beautiful baubles on their sweethearts, according to Andrew Lowe, head of Direct Line Home Insurance.

If disaster happens and the gift is lost or stolen, they will be glad they had it covered, he says.

He recommends that buyers keep proof of purchase and pictures of expensive gifts.

Direct Line also recommends that, in light of recent bad weather, people who may experience flooding make certain that their home owners’ insurance is up to date.

There is hope for first-time home buyers in spite of more stringent lending criteria, according to one report.Moneyfacts.co.uk suggests that the current economic situation may actually benefit those planning to buy their first home.

Buyers hoping to get into home ownership may need to make a larger deposit or get a third-party guarantee to get a loan.

Darren Cook, head of mortgages at Moneyfacts.co.uk, says these terms may actually work to the benefit of buyers as they will keep them from getting in over their heads.

Mr. Cook suggests that lenders are still willing to work with first-time buyers, they are simply being more cautious in the loans they fund.

Eleven mortgage lenders have cut the amount of their largest loan amount since December of last year, according to data collected by Moneyfacts.co.uk.

A new report suggests that the average Briton will spend £70 to demonstrate their affections on Valentine’s Day.According to PayPal, 23 million sweethearts in the UK will fork out a total of £1.6 billion, an average expenditure of £71.25.

Thirty-three percent say they will purchase gifts costing between £50 and £99. Among 18- to 24-year-olds, the number rises to 44 percent.

According to the survey, an additional 22 percent say they are prepared to spend between £100 and £249.

According to Cristina Hoole, spokeswoman for PayPal, love is in the air in the UK as Britons prepare to lay out £1.6 billion to woo their loved ones.

The Thrifty Scot suggests that homeowner loans may be a source of funds for those who have equity in property.

Consumer confidence in the UK is flagging as fear of increasing inflation mounts, according to new research.The number of people who expect interest rates to rise over the next twelve months grew by two percent last month, according to Lloyds TBS Corporate Markets most recent Consumer Barometer.

For the first time in six months, an increasing number of Britons are expressing concerns about inflation, according to the financial services provider.

It might not be enough to drop interest rates this month, according to chief economist Trevor Williams of Lloyds TBS Corporate Markets.

Consumers do not believe that interest-rate cuts will have a lasting impact, according to Mr. Williams. Nonetheless, a reduction in the rate will reduce interest payments and possibly stimulate economic activity.

uSwitch.com, the price comparison service, suggests that many Britons may find help with a debt consolidation loan.

The rental market promises to be good for landlords in 2008, according to an industry expert.Members of the National Landlords Association are optimistic about the potential for their industry this year, according to David Salisbury, association chairman.

A study released by Paragon Mortgages indicates that rents increased an average of 19.4 percent last year. The fourth quarter of the year saw an increase of 8.1 percent.

Mr. Salisbury says this data is encouraging for members of the industry.

The industry representative says he expects to see increasing demand for rental property in the private sector. He predicts that tenants and landlords alike will benefit from a well-managed portfolio.

The industry appears to be positioned for sustainable success over the next five years as more than one-quarter of landlords say they expect to expand their portfolio.

Moneyfacts, an independent financial information provider, suggests that people may qualify for homeowners loans backed by their equity in real property.

This week’s decision by the Bank of England to cut interest rates has the potential to increase inflation, cautions Fool.co.uk.According to the price comparison service, many experts had anticipated the move to lower the borrowing rate to 5.25, a reduction of a quarter-point. Nonetheless, higher oil prices and increases in energy costs have already stimulated inflationary pressure, and the rate cut could increase that pressure.

The fear of recession seems to be more important to the monetary policy committee than the threat of inflation, according to Fool.co.uk.

David Kuo, head of personal finance for the web resource warns consumers to shop for the highest return on their savings. The Bank of England may choose to ignore the problem, but inflation can eat into personal savings.

The demand for secured loans is expected to increase during the first three months of this year as other sources of credit dry up, according to the Bank of England.

E.ON, one of the leading gas and power companies in the UK, is increasing its rates, and one price forecasting company predicts that the move will increase household bills for some customers.The average annual bill for a dual fuel customer with E.ON will rise from £913 to £1,063, according to uSwitch.com.

On February 8, the company formerly know as Powergen will begin to implement its price increase. It is the latest in a series of increases from UK power companies.

Scottish & Southern Energy has assured customers that it will not raise rates until March, says Ann Robinson, director of consumer policy for uSwitch. Other major suppliers have all increased rates in recent months.

Ms. Robinson points out that customers who comparison shop can set themselves up for savings of £325.

A report in the Observer suggests that more Britons could decide to take out debt consolidation loans this year.