The volume of mortgage lending fall.

The British Bankers ‘ Association (BBA) published the latest data on the size of mortgage lending in the UK. The gross amount of mortgage lending in the UK fell significantly in April compared to March. The mortgage market has not shown improvement activity. (Mortgage UK)

On an annual basis, the gross amount of mortgage lending increased by 4 % . In April, the amount of net mortgage lending amounted to £200 million, and in March the figure was £300 million. The data is at least disappointing and clearly demonstrates a serious deterioration in lending. And it was one of the reasons due to which the Alternative financing Program (Government program to help homebuyers “Help to buy”) is on the rise, showing daily lending more than £ 1 million every day.

Unfortunately, the numbers speak by themselves – April figures for mortgage lending in 2013 is two times lower than in April 2007. Mortgage lending fell by more than 60% compared with pre-crisis levels. Even the most optimistic forecasts do not dare to say that the pre-crisis level of mortgage lending to realistically achieve in the next 10 years or ever.

However, some optimism is present, and the reason for his following: falling rates have led to an increase in the number of approved loans in may 2013. Program for Alternative Financing is slowly but surely moving forward and the first customers have already realized their dream to own a home. Many buyers rushed to take advantage of great rates and make offers of banks.

However, in the real estate market in the UK continues to lead transaction of the large capital or a transaction with a large percentage of the Deposit, which suggests that lending volumes are still far from ideal. A very large number of borrowers are still blocked stringent conditions of mortgage lending. There has been progress, but still a long way to go.

The development of the housing market in 2013 is determined by the possibility of obtaining mortgage lending to customers the most modest – with the smallest Deposit and lowest rates on loans. And how can banks work with this audience of customers, will affect the future recovery of the housing market in the UK as a whole.

® Maxim Savitsky 26.05.2013