Two buisness lobby groups have praised the decision to keep interest rates on hold at 0.5 per cent for a further month.

The Bank of England's Monetary Policy Committee  (MPC) voted to keep the base rate at its historic low for a 28th consecutive month, in a bid to push the country's economic situation up a gear.

Both the British Chambers of Commerce (BCC) and Confederation of British Industry have welcomed the halt, which comes despite the concern over the high level of inflation.

But according to David Kern, chief economist at the BCC, the MPC is right to keep the rate as it is in order to keep the recovery moving.

He said: " With UK inflation at 4.5 per cent, and set to increase further in the next few months, the MPC is naturally concerned.

"But tightening policy in reaction to higher utility prices and internationally generated inflation would be a major mistake."

He added: " As long as domestic wage pressures remain muted, the MPC should avoid any action that increases risks of an economic setback."

The economist said that if the economy weakens further, the committee should consider increasing the quantative easing programme above its current £200billion level.

There has been a massive rise in first time buyers seeking advice as lenders begin to return to higher loan-to-value lending.

Forty per cent of all advice sought on mortgage matters in June came from first time buyers looking for guidance. This is the highest level since April last year, figures from unbiased.co.uk show.

First time buyers however, are finding optimism as the market has returned to the spotlight in recent weeks. A number of lenders have returned to the market, offering packages to buyers with 10 per cent or even 5 per cent deposits.

This week, Housing Minister grant Shapps encouraged more lenders to follow the lead of Lloyds TSB in offering mortgages to buyers, guaranteed by parents and other family members.

He also proposed that buyers be allowed to chip in with mates to raise a necessary deposit, with the products being labelled 'mates mortgages'.

Recently the government has started a jointly run scheme with house builders which will allow first time buyers with a small deposit to top up their equity with a loan they can pay back when they sell their new build property.

Karen Barret, chief executive of the website said: " Figures suggest that confidence in the mortgage market is returning."

"We are seeing quite fast paced changes with a number of mortgage lenders having made their products more available by increasing the loan-to-value and offering attractive rates as the base rate remains hiostorically low."

British nationals working abroad are being urged to consider a currency transfer so that they can invest in property in the UK.

According to Perran Cooke, mortgage consultant at estate agent Countywide, the UK market is ideal for those hoping to expand their buy-to-let portfolio.

He believes that first-time buyers will continue to find it hard getting a mortgage, but on the other hand the demand for rental property will be extremely high and will remain so for the forseeable future.

In recent months there has been a rise in people looking to rent out properties, especially in city centres.

Mr Cooke said: " The fixed rates are getting a lot longer, so you do find that it is more of a buyer's market for buy-to-lets at the moment.

However, people were advised not to jump straight into the rental sector without thinking. Advice from mortgage consultants is that thinking about the location of property will prove to be the best thing to do. Property needs to be in an area that is desirable to renters in order to maximise potential.

Lender First Direct has claimed that mortgage borrowers could save themselves thousands of pounds by taking out an offset product rather than a savings account.

According to First Direct, over the past two years UK offset mortgage borrowers have earned £1.4bn more on their savings than those who put their money in best buy savings accounts.

The lender's customer data shows that the estimated 460,000 offset mortgage borrowers in the UK have made a total 'return' of £1.9bn over the last two years, compared with £534m in cumulative net interest if they had alternatively invested in the equal best buy savings accounts.

Richard Tolchard, senior mortgage product manager at First Direct said: " An offset mortgage is an excellent option for those borrowers looking to benefit from a higher rate for their savings"

He also said that while many savers are seeing the value of their funds eroded by inflation and being taxed, no tax applies if they use the money to reduce the interest on their mortgage with an offset deal.

He added: "In the current interest rate environment mortgage borrowers could have saved thousands more with an offset in the last couple of years, even if they had diligently been seeking out the best buy savings rates."

Recent data from the Council of Mortgage Lenders shows that the number of remortgage loans advanced in May increased by 17 per cent by number and 20 per cent by value compared to the previous month.

There were 29,000 remortgage loans worth £3.6bn advanced in May, which represents an increase of 11 per cent by number and 9 per cent by value compared to May 2010.

However, the figures represent a decrease, of 5 per cent by number and 6 per cent by value, when compared to May 2010.

The majority of borrowers opted for fixed rate mortgages in May while 22 per cent chose tracker mortgages.

Director general of CML, Michael Coogan said that seasonal factors are likely to push up lending for house purchase over the coming months.

He added: " There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market. These stable conditions are expected to continue for the rest of the year."

The research by CML also revealed that lending to first-time buyers was vitually unchanged in May.

New figures show that private sector landlords in the UK are confident in the future of the buy-to-let sector, according to research published today.

More than 67 per cent are positive about the outlook and are particularly confident about rental demand with 43 per cent believing it is now better than six months ago.

In another boost to the market, 33 per cent of landlords said that they would be looking for more investment within the next 12 months, which is up from 28 per cent last year.

A lack of finance is said to be the biggest problem to achieving the aim however as well as the high deposit requirements that come with buy to let mortgage products.

A new poll has shown that more first time buyers are seeking mortgages as confidence continues to grow.

The Building Societies Association (BSA) Property Tracker revealed the number of people who think now is not a good time to buy a home fell from 29 per cent in March to 21 per cent in June.

High deposits were still deemed to be the biggest hurdle for many wanting to get a mortgage.

Head of Mortgage Policy at the BSA Paul Broadhead said: "This barrier to potential buyers might reduce in the months ahead as a greater number of higher LTV (loan-to-value) products come onto the market."

Last week a poll by Halifax also showed that 50 per cent of people believe the next three months will be a good time to buy.

A leading financial comparison site is urging potential mortgage borrowers to avoid the pull of low interest rates on products and concentrate on considering the packages that have benefits across the board to avoid paying more than is necessary.

Moneysupermarket.com have reported that fees for both tracker and fixed mortgages have risen by over 13 per cent since September 2009. Reports have also indicated that those with the lowest headline rates do not always prove to be the best overall deals, as plans with higher interest rates and lower fees can often prove cheaper.

The group also says that in many cases it may be better to opt for higher fees to secure lower interest rates, but this depends on the sum of money being borrowed.

New data has shown that renting a home in Britain is currently almost 10 per cent more expensive than buying a new property.

According to Zoopla.co.uk it is also cheaper to buy than rent in 40 out of the 50 largest towns and cities in the UK.

Milton Keynes is at the top of the list of places where renting is the least attractive option, where average rents ecxeed the cost of servicing a mortgage by 43 per cent.

The research involves comparing the current asking prices and rents of two-bedroom flats around the country. It also assumes interest-only mortgage payments of 5 per cent per annum.

Even in the capital, buying is still 16 per cent more cost-effective than renting.

Business development director at the property site, Nicholas Leeming said: "Almost 750,000 would-be first time buyers have reluctantly ended up as renters over the past three years as a result of being unable to get a mortgage.

"With current house prices and interest rates where they are and with rents on the rise, for those who can get a mortgage, there may never have been a better time to buy."

According to the Council of Mortgage Lenders first time buyers are enjoying more success with them borrowing on average 80 per cent of their property's purchase price in April.

The news comes after lenders appeared to be loosening their lending criteria.

The number of loans approved for first-time buyers also increased by 8 per cent in April compared with the month before and was also up slightly compared with last year.

High deposits and difficulties with settling a mortgage have left many first time buyers out in the cold and believing that they would never own their own home.

However, the average 80 per cent loan to value level in April is higher than has been seen duriing most of the last two and a half years.

Michael Coogan, CML director general said: "The market continues on a stable footing and the increase in house purchase lending is a good sign that the stability will continue throughout 2011.

However, the economic outlook, coupled with Bank of England subdued approvals data for April, suggests a muted summer for mortgage completions so we do not expect further increases in lending over the coming months."