Despite the lack of interest currently being paid in savings accounts, the poor returns on investment and a distinct lack of cheap loans and affordable homeowner loans at more than 75 per cent loan to value, a recent survey has found that very nearly half of the adult population in the UK are actually quite happy with their personal financial situation.

The survey, which has been conducted by Sainsbury’s Finance, found that 46 per cent of those interviewed from a cross section of society, described their financial position as either good or very good.

Although it is a welcome sign that so many individuals are feeling confident about their financial situation, when they were asked further details, the majority had very little, or no idea about what level of interest they were actually receiving on their savings accounts, or what rate of interest they were paying on their mortgage or homeowner loan, personal unsecured loans and credit cards.

As a result of this lack of knowledge, or interest in their finances, it is quite likely that although people describe their financial situation as good, it could become significantly better, simply by shopping around for a better rate on their savings, switching their utility bill supplier, or carrying out some basic research into the availability of cheap loans and credit cards which could potentially save them hundreds of pounds in unnecessary interest payments over the term of the loan.

According to the research, the most pessimistic area of the UK is the East Midlands and East Anglia, with 13 per cent describing their finances as pretty bad, or even awful, whereas the most positive region is in Scotland, where only 2 per cent of those interviewed were negative about their financial situation.

It is that time of year once again, where thousands of students eagerly await their A level exam results and start to make the final preparations for the next stage of their education, going to University.

One of the major hurdles facing students is that of obtaining sufficient funding to see them through what is usually a three year course. Although many students have to get themselves a part time job to help fund their studies, the vast majority will have to take out a student loan in order to help them pay their way.

But with the Government announcing earlier this year that the level of student loans and grants will remain at the same level for the next academic year, whilst the cost of University fees and accommodation has increased, it seems likely that many students will struggle even more than usual with their finances and many will be forced to take out additional unsecured loans or use credit cards and overdrafts.

It is expected that the average student will have student loans and other debts of at least £20,000 by the time they graduate and many expect that it will take them somewhere in the region of ten years to repay their loans once they start working, thereby reducing their ability to obtain a homeowner loan, or other credit.

It seems that a University education is once again becoming the privilege of those families who can afford it and more and more students are becoming reliant on additional financial support from their parents, or even grandparents. But with the effects of the credit crunch and recent recession having an impact on most people’s financial situation, many potential students are now being denied the opportunity of a University education, even if they are prepared to take on the daunting prospect of huge student loan debts to get them through it.

Over the course of the past few months, we have seen definite signs of improvement and stabilisation in the housing and homeowner loan markets, although this has been from historically low levels of activity.

The latest figures from the Council of Mortgage Lenders (CML) have shown that the mortgage and homeowner loan markets are stabilising, with the total number of approved loans for both purchase and re mortgage showing a significant increase for the month of June this year, above the figures for May, although the total amount of lending is still well below the level of previous years.

According to the CML, there were a total of 45,000 new loans for house purchase in June, compared with just 36,500 in May, an increase of 23 per cent, but despite this improvement the figures are still only at a level of around 50 per cent of new loan acceptances for the month of June over the previous seven years.

The number of borrowers re mortgaging has also increased by 13 per cent since May, although the total number of re mortgage loans has fallen by around 21 per cent over the course of the second three months of the year, compared with the first three months. One positive sign is that there has been a significant increase in the number of first time buyers entering the market, which will support the rest of the market.

One mortgage broker commented on the figures, he said “A major positive is the number of loans secured by first time buyers, who are the engine of the property market. If the first time buyers are coming back to the market, the market can move. But while we are certainly seeing increased enquiries from first time buyers, the attrition rate on applications through to approvals also remain high.

There have clearly been some major withdrawals from the bank of Mum and Dad in recent months although when this source runs dry the number of first time buyer loans could fall again, which will negatively impact the entire market.”

The recent problems within the homeowner loan and secured loan markets over the course of the past twelve months or so have put many potential borrowers off the idea of applying for a loan at all, but now that there are the first signs of recovery in the housing market and there are some particularly cheap loan deals available at the moment, a growing number of individuals are starting to look into taking out a new secured loan, or mortgage, but due to a lack of choice of loan products and tighter lending criteria from banks and building societies, many potential borrowers are taking a cautious approach and using the services of an independent financial adviser or loan broker.

The news follows a new survey from Unbiased.co.uk, who have seen a significant increase in the number of customers looking to remortgage over the past couple of months and due to the current complexities of the market, an increasing number are requiring independent advice from an expert who has access to the whole of the homeowner loan market. It was a similar case for first time buyers, many of whom have very little knowledge when it comes to secured loans and mortgages and therefore often require more assistance in finding the best loan to suit their needs.

David Elms of Unbiased.co.uk said “These latest figures suggest a stirring amongst those thinking about remortgaging, after a previous two month drop in remortgage enquiries. More of those looking to remortgage are now seeking a whole of market mortgage adviser who can give whole of market advice and start to unravel the confusion of the current mortgage market. It is also clear from these figures that first time buyers remain baffled with the mortgage maze ands are continuing to seek whole of market advice to get guidance and help on the right mortgage decision for them.

With some mixed news on whether there are signs of recovery in the property market, as well as mortgage options and deals still changing at a fast pace, it is not surprising that those looking to enter the market are seeking advice.”

Since the beginning of this year there has been a steady increase in activity in the housing and homeowner loan markets, largely due to the currently relatively low prices of property along with the lowest base rate of interest in the history of the Bank of England.

Experts are also now saying that the property market has stabilised, reaching its lowest point and in fact prices are now starting  to increase once again, thereby encouraging individuals to make a purchase sooner rather than later before house prices and the cost of a home owner loan are out of reach again.

The latest statistics from Mortgageforce, show that there has been an increase in the number of buyers in the market place, but there has also been a significant increase in first time buyers, who are vital to the housing market, with this sector of buyers making up around 20 per cent of all loan applications, compared with just 9 per cent in June. In total, the number of home owner loan application has increased by 50 per cent in the space of just one month.

Katie Tucker of Mortgageforce said “Stable house prices and the availability of higher loan to value mortgages support each other more than you might think: we all know that more 90% mortgages means more buyers can get on the ladder. But it works both ways, property prices stabilising means that lenders can offer higher loan to values without as much risk, so without needing as much deposit. We expect to see even more 85%-95% deals out there soon.

Where 90% applications were sparse in June, they made up 4% of Mortgageforce’s transactions in July. Half of the purchase transactions were on 85% and 90% loan to value deals, which is high against trend and undoubtedly a result of pent up demand.”