According to figures from the British Bankers` Association (BBA), the number of mortgages approved for house purchase increased by 5% during March, the Daily Mail reports.

Throughout March, a total of 34,905 mortgages were approved (by the major banks) for people buying a new property – 20% higher than the figure recorded last March.

The figures also revealed a further fall in net mortgage lending to 2.4bn – the lowest level since July last year, and down from the `recent six-month average of 2.9bn`.

The BBA said the `subdued` net mortgage lending figure was due to homeowners using any spare money they had to pay down their mortgage debt.

Meanwhile, the amount of unsecured debt repaid outstripped the amount of debt taken on for the 12th consecutive month – with consumers paying off 63m more debt than they took on in March.

Despite debt repayments outstripping new spending, the amount of debt taken on through credit cards increased by 148m, while the amount of debt taken on through loans and overdrafts fell by 211m. Read more…

New research by Scottish Widows has found that more than a fifth (22%) of Brits admit that they have `too much debt to feel secure`.

The Scottish Widows Priorities of Life index found that although the UK is no longer in recession, many people are still feeling financially insecure because they don`t have enough time to focus on their financial futures.

36% of respondents said they aren`t prioritising their financial security enough, even though just under a quarter (24%) said they are `more afraid of neglecting their financial security than anything else in their life`.

A spokesperson for Debt Advisers Direct commented: “Making contributions to a savings account in preparation for the future can be an excellent way to protect against debt.

“However, some people aren`t in a position to save – possibly because of the debts they are carrying. We would advise anyone in this situation to contact a professional debt adviser.”

In March, the total amount of personal debt in the UK grew – but by a fair bit less than we`ve seen in recent months.

So says the Bank of England, which released its `Lending to Individuals: March 2010` figures this morning at 9:30.

In December, it seems, total debt grew by 1.7bn; in January, it grew by 1.9bn; and in February, by 2.4bn.

So March`s figure might surprise a few people: throughout the month, consumers only borrowed 0.6bn more than they repaid. It`s still a lot of money, but nowhere near the average over the previous six months – 1.6bn.

In terms of unsecured debt, the `net growth` (amount borrowed minus amount repaid) was 0.3bn in March – smaller than the totals in the previous two months, but still higher than the average over the last six months (just 0.1). Credit card lending increased by 0.2bn, but `other loans and advances` grew by just 0.1bn.

The big change came in debt that`s secured on property – like mortgages and remortgages. Read more…

Homeowners who place their savings in a mortgage `offset` account could be significantly better off over time than cash ISA savers, according to research from first direct.

It found that over the last ten years, typical cash ISA savers who also hold a mortgage would have been better off by around 3,306 had they placed their maximum cash ISA allowance into a mortgage offset account instead.

Richard Tolchard, senior mortgage product manager at first direct, commented: “For people without a mortgage, or possibly nearing the end of their mortgage, cash ISAs are often the most efficient way to save cash.

“However, for savers who hold a mortgage, this analysis show that cash savings work harder offsetting against a mortgage than they do within a tax-efficient ISA.”

An expert at Debt Advisers Direct said this highlights the importance of choosing carefully when it comes to saving money. Read more…

People who consolidated their credit card debts at the start of 2009 could well be coming up to the end of their 0% deal, moneysupermarket.com has warned.

During the `peak consolidation rush` last January, the average 0% balance transfer period on offer was 14.6 months, meaning many people who transferred their credit card debts at the start of last year have now started paying interest on their credit card debt once more – or are just about to start doing so.

So, the comparison site warns, it`s time to consider moving the debt to another 0% deal.

According to its calculations, paying 16.9% interest on a 2,000 credit card debt would mean credit card holders `would see their interest increase by 1,456 over the lifetime of the loan, and their debt sentence extend to 19 years and 9 months` – assuming there`s a minimum payment of 2.5% and a balance transfer fee of 3%. Read more…