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The ability to source cheap loans and other forms of low cost credit has been quashed, as lenders tighten the reigns on their product portfolios.

Borrowers are being forced to consider more expensive borrowing alternatives, (regardless of credit conduct) if they are adamant that they must have credit. One of the UK’s leading debt charities has stated that lenders have become “super cautious” with regards as to whom they lend to, in response to the current conditions affecting the financial markets.

The unfortunate thing however, is that it is not just customers with bad credit who are being knocked back, individuals with perfect credit pasts are also being refused competitive rates (in some instances).

However, it also acknowledged that many consumers are also reducing their dependency on credit, with stats showing that credit consumption across the board, is down by 25%. Some experts believe that this is one of the other reasons as to why lenders have increased the cost of borrowing, as they are loosing out due to a reduction in the number of people who are actually applying with them.

Analysts believe that the physical effects of the credit squeeze and the current restrictions placed on all forms of credit will remain for at least a year, after which time the markets will begin to show some form of stability.

Parents across the country have provided their children with close to £30 billion over the last 10 years, in order to supply them with adequate deposits for a UK home loan.

According to a new study, more than 20% of FTB’s have received financial aid from their parents with regards to securing the loan for a new home, with the average advance standing at around £20,000.

The UK property market, but more specifically house prices, have rose at such a rate over the last decade that many FTB’s have become completely alienated from the market, due to financial constraints. This in turn, has caused a huge number of parents to intervene in on their children’s home buying activities, offering an unprecedented amount of money and time to see them right.

On the subject of time allocation, is has also been noted that many British parents are devoting close to 20 solid hours on the actual act of house hunting in conjunction with their children, and an additional 65 hours spent on the combined efforts of moving into and refurbishment of, the chosen property.

One expert suggested that changes in the property market over the last decade or so, have made the actual act of buying a home, far more involved and financially/resource taxing than it would have been for many peoples parents. Most FTB’s have come to expect a certain degree of involvement by their parents when buying a new home, if not only on a financial level.

Loan and credit card borrowing was down by a sizeable margin in the month of January, according to new reports.

Information released by the BBA shows that the accumulative total borrowed by consumers during the first month of 2008 was just shy of ½ a Billion pounds, equating to quite a substantial reduction in credit requests, when faired against the previous months borrowing activities.

In the case of credit card borrowing, and in quite a rare turn of events, the amount repaid back to providers during the month of January, was actually more than the amount spent. Lenders have also reported that demand for home loans has also been in decline since the start of the year, with the combined total of new requests down by close to 15%.

Commenting on the shift, one expert stated that consumers are almost certainly becoming more aware of their personal finances, in respect of the credit squeeze. Borrowing across all sectors of the credit markets is low, and it would also appear that prime as well as sub prime providers are also taking a slight hit. It is most likely that we are in the midst of a transitional period, whereby consumers are exerting temporary caution with regards to their borrowing needs, fuelled by spate of negative economical speculation.

Brits who choose to remain in bachelorhood or avoid the commitment of a relationship for a prolonged period of time, will save £££’s as a result.

Recent research shows that single people stand to make substantial savings in many different aspects of their lives by remaining single, despite the benefit of joint incomes as found in most modern relationships. Accordingly, the average singleton is likely to save more than £250 each and every month on the cost of living, with the most notable savings coming by reductions in food, utility and amenity bills.

It has also been discovered that singletons will save an additional £250 each month, through not eating out frequently, showering there loved ones with romantic gifts and avoidance of other couple orientated trips such as weekends away and the cinema.

Commenting on the study, one expert suggested that although single people stand to save a lot on a month-by-month basis, having the additional cash, for some, is no substitute for being part of a loving relationship. On the other hand, there are also quite a lot of people who enjoy the single life, and the additional savings are likely to be a welcomed by-product of their decision.

Its not all bad news for couples though, as the study also found that being part of financially symbiotic relationship is huge advantage should one partner come unstuck with the repayment of a loan, or management of some other financial commitment. Being in a strong and trusted relationship often alleviates the stresses that arise from common financial mishaps.

Some of the UK’s largest home loan providers have completely withdrawn from the sub prime market, revoking all packages, which carry a maximum loan to value of 125%.

Changes in the UK’s economy, namely the credit squeeze, have caused firms operating within the sub prime/adverse marketplace to completely rethink their positions. Home loan providers are no longer willing to take the additional risk as presented through “specialist” borrowers, with analysts suggesting that many are likely to stay well away until the market shows some definite signs of stability.

There are also a number of providers who are also rejecting applications from borrowers, with a loan to value of 100%. Statistically, more than 40% of the FTB market could be excluded from the borrowing fold as a result of this move, which is likely to have a major effect on the housing market in general.

One industry speculator commented that unless a firm is willing to step up to the table, and facilitate the needs of the sub prime market, an economic reshuffle is inevitable.