Mortgage in the UK is gaining momentum.

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The company LSL (Index LSL Property Services Acadametrics ) has published fresh melon market survey of the UK.

The number of first-time buyers purchasing residential property in the UK rose by 15% in April. This unprecedented growth was made possible with the introduction of record low interest rates and a wide variety of mortgage products.

About 22,000 buyers received mortgage loans to buy residential property in April, 3,000 more than in March. Mortgages in the UK

The average rate on mortgage loans remained low, at the level of 4.31%, though they increased slightly relative to March level, is equal to 4,29%. If we compare these figures with the rates of a year ago – the rate was 0.35% less than in April 2012, which helped to attract far more buyers.

The report says that buyers with a small initial contribution began at last to benefit from government programs. This scheme allowed lenders to offer borrowers loans with higher LTV(the ratio of the loan to the purchase price). Average LTV in April 2013 rose to 80.4% from 79.9% in April 2012.

But there are constraints to growth in the number of buyers. The main one is the growth of housing prices. Average price of property purchased by first-time buyers purchasing a house for himself, rose in April by 2% to £138632. If we compare this value with the price a year earlier – an increase of more impressive – by 12.1% compared to April 2012.

Even more impressive are the figures of loans to first home buyers to buyers for the first four months of 2013. For the first four months of 2013 were issued 72900 mortgage loans, which is 15% more compared to 63,000 loans in the four months of 2012.

This figure could be even higher, but Q1 2012 was recorded an unusual surge in purchases by first time buyers in connection with the expiration of tax cuts for the payment of Stamp duty. (stamp duty holiday)

The data suggests that significantly improved the confidence of the banks to the buyers and a lot more people could realize the dream of your own house.

But weak data from the labor market, almost no wage growth and rising real estate prices inhibit this process, preventing a large number of transactions. Whatever small was the loan rate, the monthly payment on the loan should not take away most of the salary of the buyer. In addition, the proportion of the cost of housing increases and the amount of the Deposit, which is a factor that prevents to make a deal. For such cases, and created the HelptoBuy scheme , which aims to compensate the dimensional requirements of the Deposit.

This scheme, however, also has critics. In terms of good demand is not excluded sharp price spikes that can bring the housing market of Britain to the opposite effect.

® Maxim Savitsky. 12.06.2013 G.