In a sign that the credit crunch may be easing its grip, Britain’s banks and building societies are set to make more credit available to homeowners and businesses in the second quarter of this year.

According to a Bank of England report, 15% of lenders expected an increase in lending to households during the second quarter, while more than a quarter expected an increase in the amount of credit being made available to businesses.

Lenders had previously tightened the availability of secured credit to households as house prices continued to fall in the first quarter of 2009. However, a Nationwide survey published this week found that house prices increased in March for the first time since October 2007, signalling a possible turn in the housing market.

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House prices went up in March for the first time since October 2007, the Nationwide has said.

Figures from the building society revealed that property prices increased by 0.9% in March, compared to February’s prices. The small rise meant that the annual rate of house price falls went down from 17.6% in February to 15.7% in March, with the average UK home costing £150,946.

Nationwide described the rise as a “surprise bounce” but warned consumers not to make the premature assumptions about the state of the housing market.

“While the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached,” said Fionnuala Earley, Nationwide’s chief economist.

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Burger King is offering half-price entry to some of the UK’s top attractions when you buy any adult-sized meal.

When you buy an adult meal at Burger King, usually costing around £3.50, you will receive a voucher entitling you to 50% off tickets to Alton Towers, Chessington World of Adventures, Thorpe Park, Legoland, Madame Tussauds, Warwick Castle, the Dungeons, and Sea Life Centres.

To benefit, just order your meal at any Burger King branch in the UK and present your voucher upon entrance of your chosen attraction.

This offer runs until 1st November 2009 at Alton Towers; until 2nd November at Chessington World of Adventures; 8th November at Thorpe Park and Legoland; and until 31st December at Madame Tussauds, Warwick Castle, the Dungeons, and Sea Life Centres.

Click here for details of the offer and here for full terms and conditions.

Britons paid off a record £8 billion in mortgage debt between October and December last year, according to Bank of England figures published today.

In the run-up to the recession, as concerns about an economic slowdown set in, anxious homeowners put more money into paying off their mortgages, with the largest net injection of equity since records began in 1970. The new figures suggest that people are cutting down on spending , even though steep cuts in interest rates and lower interest rates on mortgage payments mean it is cheaper to borrow.

Through several years of rising property values, borrowers had withdrawn money from their homes. By 2007, the amount of extra borrowing obtained through remortgaging reached £14.6 billion, the highest proportion of after-tax income since mid 2004.

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More and more British consumers are using the online payment service Paypal to make credit card purchases over the internet, a new study has found.

According to a study by market research firm Nielsen Online, the number of Britons using Paypal for online credit card transactions from March 2008 to February 2009 was up 50% on the same period a year earlier. The increase in traffic indicated that PayPal is “far and away the most popular financial services website” said Alex Burmaster from Nielsen Online.

“The number of unique visitors accessing the PayPal site in the last 12 months has increased by an impressive 50 percent, meaning that PayPal has substantially improved its lead over other financial websites compared to the same time last year,” he said.

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Many UK consumers are unaware that they have reduce tax payments on savings with products such as ISAs, according to a new survey.

Individual Savings Accounts, or ISAs, allow consumers to save up to £7,200 in stocks and shares or cash without having to pay tax on any interest accumulated. But research from insurance firm Scottish Widows has revealed that more than three million people in the UK do not know what an ISA actually is. Those in the 18-24 age bracket were least likely to be aware of tax-free savings accounts.

The study found that three quarters of respondents who had not previously put money away in savings are now considering doing so. Yet just a quarter of these intend to open an ISA in the next year, with another 16% saying they were unsure if they will.

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