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For first time buyers, getting a foot on the first rung of the property ladder isn’t an easy task. House prices are sky high, and very few younger people have the necessary savings required to obtain a reasonably priced home loan. So what’s the solution? The answer…good old mum and dad.

According to a new report almost 30% of first time buyers are expecting or have been told, that they will receive financial assistance from their parents in order to make that first step. Apparently, the prospect of purchasing a home is a major concern for over 60% of people in there mid to late 20’s. Current market conditions do not favour the first time buyer, and a parental loan is viewed as the most financially viable option (if they can afford it, of course).

The general consensus indicates that feelings towards first time buyers are mutually that of concern. Almost 80% of people believe that today’s financial climate has made purchasing a home almost impossible, as a result more and more parents are helping their children to fund their first purchase, as they can see no other alternative. The report further suggests that parents in London are most likely to help their children, with over 30% of first time buyers stating that their parents played a major part in funding their first purchase.

Consumers are advised to be vigilant when shopping for personal loans, in order to avoid paying for “unwanted” insurance products.

Recent information drawn from a comprehensive study, conducted by a best buy website, has discovered that an alarming amount of personal loan providers are tagging PPI to loan plans without direct consent from the customer. Two of the UK’s most respected and well-known lenders have been caught red handed, attempting to bundle insurance into plans during an undercover “best practice” exercise.

The company responsible for conducting the research approached forty personal loan providers under the guise of a typical customer. Accordingly, payment protection insurance was added to plans in over half of all instances, without the prior consent, or indeed knowledge of the customer.

PPI has been the cause of much controversy recently, with news of one of the largest secured loan brokers in the country falling foul of official guidelines, and being slapped with a hefty fine as a result. The UK’s financial watchdog (the FSA) has announced plans to closely monitor the sale of such insurances by financial institutions, and has assured consumer groups that mis-selling will not be tolerated.    

The purpose of loan insurance is to protect the customer should they happen to suffer financially during the term of the loan. In such an event their commitment will be taken care of by the policy. However, a number of consumer groups have argued that many people are sold the insurance without having any real need for it, and without understanding the actual benefits. PPI can be expensive and is likely to massively increase the actual loan repayments. Many believe that consumers who are mis-sold such insurances suffer financially, as a result.

According to a new report released by the BBA today, the number of new home loans approved in April remained relatively stagnant compared to previous months. It is suggested that the curb is further evidence of an overall slowdown in the market, due to increased interest rates.

The total number of newly approved home loans for the month of April was just shy of 65,000, which represents a drop of almost 15% faired against February 07 figures. Analysts suggest that mortgage loans are becoming to expensive for many consumers, in light of a further rise in national interest which currently stands at a record high of 5.5%. Analysts also predict an additional rise in interest over the next few months, with many expecting a reach of 6% for Q4 2007.

Changes in our economic climate are almost certainly having an effect on the housing market. It is suspected that the overall demand for home loans is likely to decline even further as the year progresses. The new data also compliments house market theories with regards to home value growth. Home values grew by a mere 0.7% for the month of May, which represents the slowest incremental increase for some time. The average home in the UK is valued at around £175,000.

Reports also suggest that a decline in national secured borrowing has spurred growth in the unsecured sector. Accordingly, the accumulative total of unsecured loan and credit card borrowing has increased by a margin of £160 million for the month of April. Current interest rates have made secured loans and mortgages significantly less attractive to consumers, faired against their position this time last year.

“A nation in debt” is a commonly used statement to describe Britain’s current financial situation. But why are we all in debt? Are we buckling under the weight of increasing interest rates?, are mortgage payments to high? Or are we trying to inadvertently accumulate wealth? Well according to a recent report, surprisingly, none of the above is the major cause.

According to newly released data, the average Britain’s primary reason for gargantuan personal debt, stems from a desire to live above and beyond one’s means. The average cost of living has rose substantially over the last few years, whilst net earning’s have remained relatively stagnant, as a result personal debts have grown. Logically, consumers should be holding back they’re spending and curbing their current lifestyles, unfortunately however, increasing debt does not seem to be the deterrent that perhaps it should be.

The research shows, that rather than reducing the rate of new credit acquisition, consumer credit lust has actually increased. New personal loan and credit card agreements have been up, month on month for the last few years. It would seem that people are unable to let go of a lifestyle they are used to, and refuse to adjust due to changing financial conditions.

A separate report by a leading home loans lender has suggested that the average consumer can only afford a home valued at £140,000, however the majority of people are buying homes valued well into the 200K mark. Many lending institutions are tightening the reigns on such consumers, and have implemented stricter qualifying criteria as a result. In addition, many personal loan lenders and other credit institutions are rejecting a record amount of applications to combat the trend.

The ever-changing state of the UK’s economy is starting to become a major worry for a percentage of consumers.

According to the findings of a focused study among British residents, almost 50% of people are having serious concerns about the current financial climate in Britain, as fears of yet another rise in interest rates looms on the Horizon.

Some analysts have suggested that the possibility of rates hitting 6% should not be ruled out, and speculate that such an eventuality would have a crippling effect on both consumer and commercial outfits. Almost ¼ of those surveyed fear that if interest rates do increase again this year, the security of their jobs could become unstable as businesses make necessary “corrections” in order tackle increased costs.

Views of future housing market conditions also seem to differ quite dramatically among consumers. Around 25% of respondents feel confident that house prices will continue to grow throughout 2007 and into 2008; whereas an opposing 20% fear that a correction in the housing market is inevitable. A further 15% of people fear that our current financial situation is so bad, that the country will be forced into recession as a result.

Numerous credit lenders are making provisions in order to protect themselves from any type of negative eventuality. A number of competitively priced secured loan plans have been withdrawn from the market, and the level of approved sub-prime lending is down.