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The cost of owning and running a home in the UK has fallen by nearly a fifth over the past year thanks to falling mortgage repayments, according to new research by Halifax.

Between April 2008 and April 2009, the average annual cost of housing fell from £8,766 to £7,298, a decline of 17% or £1,468 - this fall was driven by a 47% decline in mortgage interest payments.

The expense of owning and running a home is at its lowest since 2006, and mortgage interest payments were the only housing expense category to experience a fall between April 2008 and April 2009. The largest upward pressure on housing costs came from electricity and gas charges, which have risen by 13% over the past year from £1,249 in April 2008 to £1,409 in April 2009.

This illustrates perfectly how crucial a cheap mortgage is in your day-to-day living - if you can reduce your mortgage outgoings then you will find you have a lot more room to manoeuvre.

Suren Thiru, economist at Halifax, says: "With mortgage interest payments declining by almost half over the past year, the annual cost associated with owning and running a home in the UK has fallen significantly. Such a sizeable drop in the costs of running a home will help to ease the pressure on household disposable income, providing some welcome relief to homeowners.

"Those living in London saw the biggest fall in housing costs over the past year, although the average annual expense of owning and running a home in the capital remains somewhat higher than elsewhere in the UK."

SOURCE: Halifax, 27/06/09

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Everyone is looking forward to a hot, fun-packed summer and maybe even a great summer holiday - but one accident or one mistake in an uninsured property could ruin a summer.

According to Halifax, claims for home insurance are increasing - in June last year claims soared by more than a third compared to last January's claims data. This means people claiming this summer may increase even more - and those who cannot claim may lose out on even more.

Home insurance is one of those things that you put to the back of your mind - you think you can pay off some more debts, save up a bit more for your holiday or buy that one thing you have been promising yourself before you organise your home and contents insurance. But for every day you put it off, you are increasing the chances that you may have to pay out for an accident, a theft or a breakage.

Insurance doesn't cost the earth and it is certainly cheaper than replacing windows, furniture or even a kitchen or roof. Anything can happen at any time, so it's sensible to be ready for the worst. If not? well, you may have to cut short your holiday or spend a few hours doing some overtime in the office to make up for your lack of insurance.

David Rochester, head of underwriting for Halifax Home Insurance, says: "During the summer months we often notice an increase in claims for broken windows and other accidental breakages. We'd advise anyone to take care, and check they are insured for accidental damage should a mishap occur."

SOURCE: Halifax, 19/06/09

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A new study has found that nearly half of all consumers looking for a mortgage adviser were first-time buyers in April, proving how important advice is to those who have never had a mortgage.

The study by Unbiased.co.uk found that many people looking for help with their mortgage were first-time buyers, while nearly a third were those looking to re-mortgaging, as homeowners continue to seek advice on the best deals, releasing equity and whether to fix or not to fix in the current climate.

The mortgage market is always confusing but right now we are at a cross roads as cheap trackers compete against low rate fixed mortgages. There is also an explosion in offset mortgages, as well as constant demand for buy-to-let mortgages - all of these need some sort of professional advice.

David Elms, chief executive of Unbiased.co.uk, says: “Last month’s study demonstrates that as first-time buyers and homeowners find themselves confused by the continually changing mortgage market, they are putting their faith in whole of market mortgage advisers.

“In the current climate, consumers need expert advice to get the best deal for them and a whole of market mortgage adviser is best positioned to serve these needs. Only whole of market mortgage advisers can give you advice and recommend solutions and products from across the range of mortgage providers.”

First-time buyers need a helping hand - there are so many facets and caveats to mortgages that people, especially those who have never experienced home loans before, can be confused and can lose money. A professional adviser will hold a first-timer's hand through every step of the process, from application to completion and beyond.

SOURCE: Unbiased.co.uk, 17/06/09

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It's crunch time - funding is becoming more expensive as the economy grows in confidence and the cheap fixed rates on the market are coming to an end - it's time to act now and get locked in.

Fixed rate mortgages have been falling for nearly two years, but moneysupermarket.com warns they are about to start creeping up again.

The tumbling Bank of England base rate has meant mortgages fixed over two and three years gradually fell from August 2007. However, with the markets predicting the base rate will begin to creep up again as the economy recovers; lenders are likely to look to increase the rates on their fixed rate products.

In August 2007, the average best two-year fixed mortgage was just 5.73%, but by June 1 of this year that had fallen to 3.56%. Now, just two weeks on that has risen slightly to 3.62%, evidence that the bottom may have been reached. Three year fixes have yet to increase, down to 4.09% from August 2008's 6.42%, but they have been slowing down and a rise next month will not be a surprise.

Louise Cuming, head of mortgages at moneysupermarket.com, says: "For a while now many people have been waiting to pounce once we reach the bottom of the mortgage market, it seems that time has come.

"The possibility of a rising rate means banks will be charging each other that little bit more for credit, and they are unlikely to let consumers continue to enjoy lower rates for long. Our data shows this is already affecting two year fixed rate deals, which have risen slightly over the last six months.

"Borrowers looking to fix should lock in quickly, before the next tranche of mortgage products come through showing drastically increased rates. Borrowers might also consider fixing for a longer period of time, say up to five years. If the base rate climbs back to mid 2008 levels, fixed rate deals might be going up for some time."

SOURCE: Moneysupermarket.com, 12/06/09

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More and more people are looking to fix in their mortgage rates now before the economy drives up the current low fixed mortgage rates.

The Council of Mortgage Lenders has found that 69% of borrowers took out a fixed rate mortgage in April, with an average rate of 4.83% - it says it has not seen this many people fixing in since June 2008. More and more advisers are urging their clients to think of the long-term and ignore the short-term gains a tracker or variable rate will give them right now.

While CML figures found that the number and value of house purchase loans increased by 16% from March to 35,600 loans worth £4.5bn in April, year-on-year the value of loans is down 40% and the number of loans down 28%.

Bob Pannell, head of research for the CML, says: “With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer term periods of five-10 years. With expectations for rates to remain low in the near future, shorter term fixed-rate deals are less appealing than attractively priced variable rate deals. There are tentative signs of house purchase lending stabilising, but we need to see considerably higher transaction levels to underpin house prices."

You might read this and scoff at the idea of locking into a 4.83% mortgage for five years while your standard variable rate languishes as low as 2.5%, or while your tracker is tracking below the base rate. While it's great that people are paying so little, they must understand that if and when rates rise, they will have quite the shock.

So talk to a mortgage adviser about avoiding a payment shock and locking in now, while the fixed rates are going good.

SOURCE: CML, 11/06/09

To keep up with the latest news and comments on the mortgage market please visit the Mortgage Broker Blog.