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The temptation to “keep thing as they are” when it comes to your mortgage is easy, but you could find you’ll pay over the odds if you don’t shop around every once in a while.

Fixed rate home loans are one of the most common forms of finance for any homeowner, however recent reports indicate that as many as 1 in 6 of all consumers on such plans could find a better deal. It seems that consumers opting for fixed rate mortgages are willing to pay more for the safety of a guaranteed rate, rather than betting their repayments against interest rate rises.

However, the studies are not typical of every homeowner and vary quite dramatically depending on geographical location. Of the findings, around 7 in 10 of all homeowners in the southern part of Britain opt for fixed rate deals, mainly due to above average house prices. In the north of the country, around 4 in 10 prefer variable rates.

If you have had the same mortgage deal for some time, it can be quite beneficial to shop around every now and again. Despite changes in the economy, the mortgage industry is still fiercely competitive and chances of finding a cheaper deal than your current plan are high. This is especially true for later generations, whose home loan plans have remained “stagnant” for more than 10 years.

For many people in the UK, debt is unavoidable. As the cost of living increases and inflation rates continue to rise, a large proportion of consumers are forced to turn to credit as a means to survive.

However, recent reports suggest that a great percentage of people in debt, have got so, not as a means to survive but on a quest for physical perfection. Apparently, the number of people applying for loans to fund a spate of cosmetic surgery has increased dramatically over recent years.

One of the UK’s leading lenders reports that nearly 1 in 6 of every approved loan application is for cosmetic surgery totalling over 5.1 million pounds, with the average loan value equating to more than 6,000 pounds. 

The change in public perception with regards to cosmetic surgery is said to be responsible. Nowadays people are more open to the idea of physical alteration and are less judgemental towards people who choose to pursue it. However, the cost of doing so can be great, and people seem to be less concerned with coping with the loan repayments than if such a procedure can truly justify the debt.

Cynics claim that on no account can cosmetic surgery ever be a justified reason to get into debt. Of course, for many people such a procedure can be more than worth it, especially if they feel it will improve their overall quality of life. In such cases, the fear of debt poses little if any sort of deterrent at all.

Regardless as to whether people agree with It or not, the fact remains that cosmetic surgery is a growing industry, with growing price tags, and for many a loan will be the most obvious route to fund such pricey procedures.

The future success of the UK’s economy will be dictated, directly by consumer borrowings.

According to a new report, it is imperative for UK citizens to cap their borrowing levels now or risk a major financial decline. Our current economies strength is said to rest on unstable foundations formed predominately by homeowners securing loans against equity in their properties, and continually sourcing other forms of credit.

Many people are living beyond their means, and as a nation we are responsible for a combined debt of almost 1.5 trillion pounds. Many lenders have relaxed their criteria, enabling people with a “not so perfect” credit history to qualify for loans, mortgages and other types of finance.

For many people, our current nations strength is providing credit opportunities that they may not have been privy to otherwise. For the time being it causes little problems, however the fear for many analysts is that a sudden change in our economy could have a hugely negative impact on us all.

With increasing interest rates, echoes of the housing market crash of the early nineties are becoming all too familiar. However, many first time buyers have little to no recollection of the crash, which analysts are popularly referring to as “the boom and bust cycle”. It is likely that analysts will use housing market trends as a primary means to indicate what lies ahead.

The cost of living for many UK consumers has skyrocketed as a result of a further rise in inflation. Many homeowners are reportedly snapping up cheap rate home loans for fear of rate withdrawals in coming weeks.

A handful of lending institutions were still offering low rate loans at the back end of last week, however the majority of major lenders have already withdrawn such offers.

The Bank of England’s base rate is expected to climb to a record high of 5.75% over the next few months. Although many loan plans are directly tied into the rate of inflation, if has been suggested that panic buying may be uncalled for as the home loans industry is still exceptionally competitive, forcing many lenders to go against the grain when pricing their plans.

The biggest concern for economists is that rising rates will have an adverse effect on the housing market as a whole. And although the dramatic rate increase is said to be temporary, no one is expecting rates to fall, which is causing a slow down in the overall growth of the market.

There is some positive news for first time buyers however. The market slow down should enable many young buyers to get a foot on the ladder, however further studies suggest that much of the property available in inner city areas is being sold to landlords for buy-to-let purposes.

On the other side of the coin, the rental market is experiencing strong growth at the moment with many BTL landlords refusing to relinquish ownership of properties due to increasing demand. It is also suggested that BTL landlords could play a significant role in controlling the markets volatility.

If you are currently considering a home loan, plans linked to variable rates may be appealing at the moment, but it is always worth considering fixed rate deals from a security perspective.

Lending institutions in the UK have been warned to be wary when lending to consumers with adverse credit history.

The finance industry’s watchdog is paying “special attention” to this particular part of the market, and has announced that arrears are running at almost 22 times that of the prime mortgage market. The sub prime market has come under fire recently, in wake of the financial difficulties experienced by our cousins across the pond, which are coping with one of the biggest financial catastrophes of recent times.

A senior member of the FSA has suggested there are obvious parallels between the UK and US although there are also some differences. Many consumers in the UK experiencing debt problems are securing loans against newfound equity in their home, generated as a result of rising house prices. The problems in the US have stemmed from similar trends, however even slight changes in the housing market can put many indebted consumers at risk, as demonstrated in the US.

Many lenders within the UK have or are moving into the sub-prime market, attracted predominately by higher margins. The financial watchdog suggests that such moves could be very risky.

Bad credit home loans are becoming common, with almost 10% of the market formed from such products.