A report from Halifax says the average stamp duty bill for first-time buyers has almost doubled over the last five years. In the South East, South West and East almost all first-time buyers paid stamp duty, while in Northern regions only 42% were liable, the report said. The threshold at which buyers pay 1% has been increased to 125′000 this has helped first time buyer mortgages purchases.

“Stamp duty has again become an issue for first-time buyers because the stamp duty thresholds have not kept pace with house price inflation,” said Martin Ellis, Halifax chief economist.

“We call on all political parties to raise the stamp duty thresholds to compensate for house price inflation over the past decade,” he added.

According to a monthly survey from the Halifax, prices across the UK fell by 0.3% in February, taking the annual rate of inflation down from 4.5% to 4.2%. This is welcome news for anyone looking to arrange a first time buyer mortgage. It obviously is becoming a first time buyers market.

Shop around for a first time buyer mortgage many lenders still see new customers as good business. Have a look at what the smaller lenders have to offer, the big banks don’t fair so well in the lists of low cost lenders this time of year. Some of the best first time buyer mortgage deals come from Newcastle, Cheshire, Nottingham and the Co-Op bank.

The Financial Services Authority has announced today that one in five people are worried about making mortgage payments in 2008. Many 100% mortgages deals and borrowers whose fixed rates will be coming to an end this year will be extremely concerned what their new payment will be.  

The FSA is so concerend that they will be launching a £2m advertising campaign. Northern Rock is only offering 100% mortgage borrowers the standard variable rate when borrowers fixed rates expire. Other lenders have not passed on all the rate reductions as they are struggling to make profits.

“Economic conditions are getting tougher, putting pressure on family finances,” said Chris Pond, FSA director of financial capability. fsa.gov.uk 

The poll of 2,011 people aged over 16, of whom 573 were mortgage holders, found that 19% of those asked were concerned about meeting the cost of their mortgage repayments.

Last month, the Council of Mortgage Lenders (CML) cml.org.uk/cml/statistics said repossessions rose by 21% in 2007 to 27,100 homes, the highest figure since 1999, which reached over 70,000.

Many 100% mortgage borrowers and people who’s fixed rate is coming to end would be wise to start shopping around and talking to a mortgage broker. If they are gtting into any difficulty they should talk to their lender as soon as possible, or contact a  free independent debt advice service.

For a long time there have been calls for free advice funded by levies from companies regulated by the Financial Services Authority. More so now with Bad credit mortgages and 100% mortgages being a regular topic in the news due to the current changes in the world economy.  

A report conducted on by Thoresen Review of Generic Financial Advice, commissioned by the government, suggests a £12m two-year pilot project.

It said a telephone; internet and face-to-face advice service should be funded by the government and by levies from the financial services industry. 

Otto Thoresen, the head of the financial services firm Aegon, was asked by the Treasury to design a national money guidance service. His review suggested that people would use such a sales-free service for significant life events that affect finances, such as starting work, buying a house, having a baby, divorce or retirement.

Many first time buyer mortgages now require a deposit of between 5 and 10%. Some lenders are insisting more stringent credit checks. A minor change in your credit report in the wrong direction like a late or missed payment on your credit card is likely to see you declined for any of the best mortgages available.

The Citizens Advice Bureau has gone on record saying there service is busting at seams. Good quality debt advice should be available to everyone.

Bank of England has cut rates in an attempt to keep the economy moving. The US Federal Reserve has recently cut rates from 4.25% to 3%. Anyone looking to remortgage can expect to get a better deal especially some one with a bad credit mortgage.

It will be a welcome cut for homeowners and anyone arranging a first time buyer mortgage as energy prices are increased, and Council Tax rates are set to rise in certain areas of the country.  

The Woolwich is one of the first big Lenders to announce it will be cutting its Standard Variable Rates (SVR) by the full 0.25% following the Bank of England’s announcement. This has an effect on anyone on a base rate tracker mortgage.

A further cut is likely, inflation will be watched closely. It currently stands at 2.1% but rising energy costs and food prices are expected to push the inflation up further past the 2% target.

Surveyors are reporting a falling house prices similar to the 1990’s housing recession. The property market is in the midst of a property slump. The bad credit mortgages have taken effect according to many studies.

The report, by the Royal Institution of Chartered Surveyors (Rics), warns that the number of its members reporting falls in house prices has climbed to its highest level since the height of the last housing crash in the early Nineties.

Recent data shows house prices fell apart from a slight increase in October of 0.1%. Halifax and the Nationwide building society have suggested the market weakened in December.

The Rics study said that only one per cent of its surveyors reported a rise in house prices in the last three months of last year, compared to the 61 per cent who reported a fall.