The Bank of England has reported a rise in mortgage approvals.

The official figures suggest that mortgage approvals increased to the highest level in four months in April.

April saw the UK Banks granting 49,871 mortgages, an increase on the 49,008 approved in March. The figures beat the predictions of economists and are the highest since December of 2009.

Low interest rates are being sighted as the reason for people being able to get onto the property ladder. However, the number of mortgages being approved is still around the 50% mark of the October 2007 boom. November last year saw figures reach 59,531, so it is evident that we still have some way to go.

Although more mortgage products are coming onto the market, it is still a struggle for most still coming out of the recession.

Lloyds Banking Group have reported that twice as many people made overpayments to their variable mortgages in 2009 than in 2008.

According to the figures, 14% of Lloyds Banking Group customers paid more than the minimum amount towards their mortgage in 2009.

Lloyds Banking Group have said that due to historically low interest rates, they have seen a large rise in mortgage overpayments. Those who have a variable rate mortgage have greatly benefited from the low interest rates and have subsequently opted to overpay – decreasing their mortgage.

Individuals with a £100,000 mortgage have seen monthly repayments drop by around £275 as the base rate fell from 5% to the record low of 0.5%. Working on this basis, an overpayment of just £50 on a 3.5% interest rate could work out as a saving of £7,500. Another way of looking at this is that by making this small overpayment you could reduce your 100,000 mortgage term by three and a half years.

With the Bank of England holding the base rate so low, borrowers are seeing the opportunity to cash in, reducing their overall loan and making significant savings in the long term.

According to a recent study into mortgage lending during the first quarter of 2010, mortgage brokers accounted for 62% of all property loans.

First time buyers seem to the biggest group looking to mortgage brokers for advice on the right product for them, with 71% of first time buyer loans coming from intermediaries.

Mortgage brokers have been very important to homemovers and remortgagers, bringing 57% of all homeowner loans to the market and 64% of remortgages by value.

Many mortgage brokers lost out during 2009 when lenders sought to offer product strictly through branches, but the recent statistics show that brokers are a vital and value channel for all. This is not just the case for borrowers who want to know what the whole market has to offer but is also key to lenders, offering them an effective route to market.

The study shows that people want advice and someone who can give them a good over view of the market and explain what will really suit their needs. The mortgage market is a frightening place for many, especially for first time buyers, so it is not completely unsurprising that they are looking to experts for help.

The UK’s largest building society Nationwide, says that it believes that the UK property market will remain pretty stable over the forthcoming 6 to 12 months.

According to Nationwide, the pressure on property prices is decreasing as new properties enter the market.  They also predict that the UK base rate will not increase during the rest of 2010.  If this is the case, then interest rates should remain at a steady 0.5%.  In turn this should increase liquidity in the mortgage market and help to get the property market flowing.

With the UK property market finally picking up, is it only about to get another kick in the teeth?  The debt problems facing Europe could have a major impact on the UK economy and the longer that the issues persist, the more likely this is to happen, so perhaps we aren’t out of the woods yet.

With new mortgage products coming onto the market all of the time, it is worth investigating what your options are now.

In these tough times its hard to get a mortgage, there was 22,051 mortgages approved in December an increase on November’s figures according to the British bankers association. For those lucky ones who have managed to get a mortgage it’s just as important to protect your self against losing your home.

Income protection is an umbrella term for insurance policies which pay a lump sum or monthly income to you, the policyholder, if you are unable to work. They are designed to assist you financially by paying the mortgage and the bills if you are unable to work due to accident, sickness, redundancy or death.

There are many Insurance Providers on the market who offer their own versions of Income Protection, it would be easier if generic terms were used, unfortunately the providers use their own terms for their products, making comparing products and choosing the right policy confusing. The following are the most popular terms used by providers and their general meanings. Clients may choose one or all of the following.

Mortgage Protection is linked to your salary and monthly mortgage payment. These policies are designed primarily to pay your mortgage plus a little extra, (usually 133% of your monthly mortgage payment), in the event of Sickness, Accident or Unemployment.  These policies will pay for either 52 or 104 weeks while you recover / or look for alternative employment. You may take Accident and Sickness only, or Accident Sickness and Unemployment.

Income Protection (also known as Permanent Health Insurance – PHI) this is the Rolls Royce version of Mortgage Protection. These policies offer a larger monthly income to cover the cost of not only the mortgage, but bills, food – anything your salary would usually pay for. In addition these policies pay long term, i.e. until you return to work, until the end of the policy term or until you die.

Death Benefit policy pays a lump sum on your death. If you have a family it is wise to insure the mortgage amount and then some, if you have young children and the mortgage is repaid your partner will still have monthly expenses for bills and food. Most death benefit policies will pay early if you are diagnosed as being terminally ill.

Critical Illness Benefit offers either a monthly income or lump sum payment if you are diagnosed with a critical illness such as cancer. Can be taken for the full mortgage amount, or a smaller amount e.g. 2 years salary to pay mortgage and bills while you receive treatment.

The Government has also announced 3 new schemes that lenders should be able to advise you on.

1) The Support for Mortgage Interest (SMI) for those on Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance and Pension Credit offers help on loans up to £200,000.

2) The Homeowner Mortgage Support Scheme helps couples facing hardship, where one partner has lost their job, by deferring a portion of mortgage interest for up to two years.

3) The Mortgage Rescue scheme, offers families and the elderly either a shared equity option on their home or a Government mortgage, allowing them to remain in their home.

If you want to know more about protecting you mortgage, then contact Click n go Mortgages here.