The Week Unzipped: Home loans in the doldrums as first-time buyers save up 20% deposits

Banks and building societies advanced 44,000 loans totalling 6.3 billion for house purchase, unchanged on the previous month. However, this represented a 15 per cent fall in lending volume and a 13 per cent fall in value compared with two years ago.

The volume of remortgaging loans grew 4 per cent, while loans to home movers were down 2 per cent.

The number of loans to first-time buyers increased by 3 per cent from October. Although lending criteria remained tight, first-time buyers borrowed on average 80 per cent of their home's value. This is the highest loan-to-value the market has seen since November 2008.

CML director general Michael Coogan warned: "The funding and capital constraints on lenders will continue to exert a dampening effect on lending, and criteria are unlikely to loosen substantially."

Students work longer

STUDENTS are working longer hours to cover the increasing cost of university life, according to research from the National Union of Students and Endsleigh.

Last year students worked 15 hours a week on average during term time, up from 13 hours in 2008. During the holidays students typically work 24 hours a week. This is a 40 per cent increase from 17 hours in 2008.

Two-thirds of students have jobs at university. Students typically earn 6.50 an hour and the majority have unskilled jobs, including bar and shop work.

The research also revealed students' spending habits. The largest weekly outgoing is rent, which sets students back 80 on average. Between 30 and 35 is typically spent on groceries each week and a further 17 on alcohol.

Power bills to rise

E.ON has become the latest energy supplier to raise its gas and electricity prices this winter.

From 4 February customers will see a 9 per cent rise in the cost of electricity and a 3 per cent increase in gas prices. A typical dual fuel customer will see their annual bill rise by 62, according to Uswitch.com.

The supplier blamed the rising wholesale cost of energy for the price hike. All but one of the "big six" energy companies has increased prices this winter. Only EDF Energy still pledges it will not put up prices before March 2011.Energy regulator Ofgem is currently reviewing pricing in the domestic energy market.

Phone cards failure

ONE in ten international phone cards does not work, according to Ofcom.

The regulator has launched a crackdown on the advertising and sale of pre-paid phone cards following research that revealed a number of failings.

The investigation found that iCard, Lycatel and Nowtel typically provided a quarter or less of the minutes advertised.

Ofcom also found that the terms and conditions of the cards were often confusing, especially to those for whom English isn't a first language.

Around five million people use these cards in the UK.