A leading property group released figured yesterday showing a rise in the number of mortgage applications in April.

Council of Mortgage Lenders (CML) claimed that close to 57,000 loans were approved in April a rise of nine per cent from the previous month and the highest figure since December 2007.

This figure might be a sign of a turnaround or it could just be a reprieve for a market that has been in a steep decline for most of the year.

It seems that as soon as talk turns to more positive economic news, more data is release showing the economy is a long way from getting out of trouble.

CML has indicated that there would probably be further hurt before any real growth was established.

“Monthly house purchase lending volumes continue to be lower than levels and there will be a further weakening in coming months as recent approvals data has shown,” CML director general Michael Coogan said.

Borrowers are confident that increasing inflationary pressure will force the Bank of England to raise interest rates so borrowers are trying to lock in a fixed rate.

Higher interest rates mean cheaper houses; better a lower principle than a lower interest rate.

Now might just be the time for first homebuyers to wait because further falls in housing prices will put buyers in a better position even with a higher interest rate. But if you are already in the property market, then refinancing is definitely an option worth considering.

Britain’s road users have been given a reprieve from a taxation of filling the car at the petrol station.

Chancellor of the Exchequer Alistair Darling announced in his first budget, a six-month delay in implementing the two pence a litre fuel duty.

The fuel duty was scheduled to begin in April, but with crude oil prices near record highs the HM Treasury is trying to alleviate more upward pressure on pump prices.

The delay isn’t the slow death of the duty. In fact the treasury used the budget announcement yesterday to reaffirm its commitment to the proposed duty.

“The planned fuel duty increase of 2 pence per litre in April 2008 will be delayed until 1 October 2008. Main road fuel duty rates will rise by 1.84 pence per litre on 1 April 2009, and will increase by 0.5 pence per litre above inflation on 1 April 2010,” the statement said.

So, how does this affect the consumer?

Fuel and energy costs are a major chunk of a personal budget and it is also the most volatile expense.

The daily price changes can have an adverse impact on a personal budget and can be the difference in how much we save each week.

Increases in fuel prices also have a negative impact on inflation, not only does it increasing the price at the pump but it also raising the cost of food, clothing and other essentials.

Rising inflation also has a negative impact on the money that people can save.

A inflation calculator shows how our day-to-day budgets are affected by inflation and how rising costs can erodes our wealth.

Borrowers may be facing tougher times, but the outlook is definitely brightening for savers.

While mortgage providers are undoubtedly getting choosier about who they lend to (see below), savings providers are competing to pull in the cash – and to do that they need to offer better interest rates than their rivals.

But some just aren’t playing fair.

* Many offer short-term introductory bonuses to lure savers in and then slash their interest payments.

* Others impose complicated restrictions on deposits and withdrawals making it almost impossible to earn the promised rate.

* And others still offer so-called ‘guarantees’ that turn out to be not quite what they seem.

Rachel Thrussell, head of savings at Moneyfacts.co.uk, observes: “With competition hotting up, rates rising and new accounts being launched, it’s a perfect time to bag yourself a great savings deal.”

However, she warns: “But hand in hand with increased competition comes increased ‘creativity’.

“Some providers are attaching numerous terms and conditions to accounts to enable them to offer those very appealing interest rates.

“So it’s never been more important to look beyond the headline rate. If it looks too good to be true, then it probably is – unless you are willing to jump through a number of hoops.”

If you’re thinking about opening a new account, avoid these traps by looking for no-strings deals.

Several – including Bradford & Bingley’s Internet Saver, paying a market leading 6.4 per cent, Icesave Easy Access and AA Internet Access (both 6.3 per cent), Sainsbury’s Bank Internet Saver (6.25 per cent) and Yorkshire Building Society’s Internet Saver (6.2 per cent) – pay good rates without nasty surprises hidden in the small print.

It’s getting tougher to find a mortgage.

In the past six months, nearly one in three applicants has been rejected by lenders, who are tightening their loan criteria.

The combination of the US credit crisis, which has seen a record number of poorer mortgage holders default on their payments, and the stock market turmoil and housing market certainty on this side of the Atlantic is making lenders very nervous indeed.

As a result, according to today’s Daily Telegraph, an estimated 372,000 of the 1.2 million people applying for a mortgage between April and September were turned down.

This compares to an estimated 230,000 people – or one in five applicants – who suffered a similar fate in the six months to March.

More and more lenders are deciding whether to lend on the basis of what they think people can afford rather than just their earnings.

That means they’re looking very closely at prospective borrowers’ existing debt levels – and how they’re coping with the repayments.

But that doesn’t mean that if you’re finding it tough to get a mortgage you should grab anything you can get.

Do your best to get your finances in good order before you go looking.

And, if you want to get the best possible deal for your circumstances, it’s more important than ever to enlist the help of an independent expert.

The stock market turmoil is forcing up the interest rates at which banks borrow to fund mortgages.

And that means the rates they charge customers are on the increase too.

Earlier this week, Abbey announced its mortgages were about to get more expensive, and other lenders – including Halifax - look set to follow.

So it’s no surprise to see Woolwich, the mortgage arm of Barclays Bank, promoting a new ten-year fixed-rate deal.

It’s hoping nervous borrowers will flock to fix their rate at 5.59 per cent for the next decade.

Andy Gray, Woolwich’s head of mortgages, says: “With many borrowers coming off cheap fixed-rate deals this autumn, and many people in the market worried about volatility in interest rates, this product offers long-term security.”

But this type of security comes at a cost.

Although, in the current market, 5.59 per cent may appear attractive – especially when the Bank of England’s own base lending rate stands at 5.75 per cent – that could well change in a year or two.

Most experts agree that before too long interest rates will fall, and someone tied in for ten years to a rate that’s no longer competitive will be badly out of pocket.

Sign up for a product like this and there’s no way out though – unless you want to pay a six per cent early repayment penalty.

For someone borrowing £150,000, that would be £9,000 down the drain…

And for most people, that’s far too much to pay – even for long-term security.

…That’s not something I’m likely to say very often.

But Chancellor Alistair Darling deserves praise for his attack on the banks’ over-eager attitude to lending.

Between us, we Brits owe more than £1.3 trillion and record numbers are struggling to keep up with mortgage and other debt repayments.

In today’s Daily Telegraph, Mr Darling says the big banks need to get back to ‘good old-fashioned banking’.

And that means being far more cautious about who they lend to.

He makes it clear borrowers share some responsibility for their troubles, saying: “They need to ask themselves, ‘Can I repay this?’”

He adds: “Institutions have in some cases been prepared to lend to people without checking if they were ever going to repay it.

“It doesn’t do any good for anybody, particularly the person in debt but also the lender, to be getting into a situation where you have bad debts.”

Well said – if banks didn’t lend irresponsibly people wouldn’t be able to get into such a mess.

There’s been an interesting development in the battle over bank penalty charges.

At the end of July, the Financial Services Authority gave the banks permission to put all refund claims on hold pending the result of a High Court test case.

This won’t be known until next year, but if it goes as campaigners expect, the Office of Fair Trading will order a clampdown on these charges – just as it did with credit card charges (see The costly truth about credit card transfers, below).

Now, out of the blue, Lloyds TSB has announced it’s cutting its unauthorised overdraft charges.

It claims it’s merely responding to requests from customers.

More likely it’s bowing to the inevitable and wants to make some good publicity out of it.

What’s the betting that when its fellow lenders follow suit, Lloyds will be heard reminding anyone who’ll listen that it made the first move and they are only copying its generous action?

Credit card balance transfer fees are on the increase.

The average charge has risen by 0.5 per cent to 2.67 per cent in the past year, according to MoneyExpert.com.

Last September, the typical fee was 2.1 per cent, but the desire to recoup profits lost following the Office of Fair Trading’s order to cap penalty fees at £12 has prompted a slew of rises.

And around 90 cards now charge a flat transfer fee of 3 per cent.

That means someone shifting a £5,000 debt could pay £150 for the privilege.

You don’t have to fork out to move your debt to a cheaper card though.

True, you won’t find any lenders who don’t charge a fee offering 12 months interest-free on a transferred balance.

But you will find five and six-month deals – providers include Norwich and Peterborough Building Society, Northern Bank and Ulster Bank.

If you don’t think you can clear your balance that quickly, several others – including Sainsbury’s Bank, Northern Rock, Yorkshire Building Society and Mothercare – charge less than 6 per cent for the life of the transferred balance.

If you really put your mind to clearing your debt, you could find that works out cheaper than paying a transfer fee.

Mortgage rate and house price rises are keeping first-time buyers out of the market.

New figures from the Council of Mortgage Lenders show the value of lending to first-timers in July was down 4 per cent on a month before, at £4.4 billion.

And, at 32,400, the number of first-time buyer loans was an even more worrying 12 per cent lower than a year ago.

That’s not to say there aren’t ways for cash-strapped first-timers to get a toehold in the market.

Of course, some are riskier than others.

According to the CML, the average first-timer is borrowing 3.39 times their income.

Many lenders will now go as far as four-times income, and some will lend five or six.

But borrowing at that level makes buyers hostages to fortune.

Job loss, ill health, further rate rises or falling property prices could quickly transform what looked like a minor financial gamble into a catastrophe.

A significant proportion of first-timers are going for interest-only loans in the belief that this will keep their costs at an affordable level.

But this is an equally dangerous and, ultimately, costly course of action.

There are less risky ways to make buying affordable, though.

A loan or mortgage guarantee from parents, pooling resources with a friend or taking advantage of one of the Government’s low-cost HomeBuy schemes can all help turn the dream of property ownership into reality.

If you’re one of the eight million Britons planning to buy a car in the next six months, don’t just sign up for your dealer or bank’s finance package.

It could add thousands of pounds to your costs.

Samantha Owens, head of personal finance at money search engine Moneyfacts.co.uk, warns: “Get your finance choice wrong and it can prove a costly mistake.”

Some dealers offer interest-free credit and, provided you read every word of the agreement so you know what you’re getting into, it can be a boon.

But, according to personal finance switching site uSwitch.com, the average annual interest rate on dealer finance is 10.76 per cent – and many charge considerably more.

That’s why a low-cost personal loan can be much better value.

These are available from 6.3 per cent – but they too can be far more expensive.

Samantha says: “On a £5,000 loan, the difference between choosing the best and worst loan deal could cost you an extra £861, while the wrong choice on a £10,000 loan could see you out of pocket by more than £2,600 – or, to put it another way, increase the cost of financing your car by a massive 26 per cent.”

That’s why it’s vital to compare rates before committing yourself.