Love is in the air for Britons finances

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Mortgages, Accounting, Loans & Insurance

Thursday 7th February 2008

As Valentines Day approaches, a number of financial services providers are reporting the effect romance can have on Britons monetary situations.

The news is both good and bad as, while the estimated cost of the day itself is put at £1.6 billion, the extra financial flexibility offered by a partner is helping many first-time buyers on to the housing ladder.

Online payment processing service PayPal advises that the typical Briton now spends 15 per cent of a weeks wages on the perfect Valentines gift for their partner.

This amounts to £71.25 each, the organisation observes - with consumers using a variety of methods to secure the ideal present.

PayPal spokesperson Cristina Hoole explains: "With Christmas only a few weeks behind us, millions will be hitting the shops en masse.

"However, one in five of us will choose to head online and avoid the crowds."

She adds that this is not just a more convenient way to grab a gift but that having packages delivered to a work address allows them to be kept secret until February 14th.

With many consumers still feeling the financial pressure from Christmas, Valentines Day might seem to have come round particularly quickly this year.

But figures from mortgage broker John Charcol reveal that many couples are benefiting financially from their loved-up status.

Technical manager Katie Tucker asserts that, in 2006, couples formed 45 per cent of all first-time buyers.

In 2007, this figure rose to 50 per cent, indicating that "love was in the air" and helping them to make the most of their combined income.

"Buying together is a very sensible choice in terms of affordability," she concludes, arguing that splitting mortgage costs could prove useful, as could "cuddling up" to save on heating costs. ADNFCR-8000200-ID-18458389-ADNFCR ©