The number of mortgage loans in London is increasing

The first-time buyers buying a house, got 11200 mortgage loans for the purchase of residential property in London in Cardale 2013. It is the largest figure since the end of 2007. These are the latest figures presented by the Council of mortgage lenders in its report for the second quarter of 2013.

Usually first-time buyers afford housing, most in London. Their number in the capital exceeds the total number of customers across the UK. For example, in the second quarter of 2013 in London there were 56% of the total number of buyers of property in London and throughout the UK – 46% of the total number of buyers.

In the second quarter of 2013, the number of first-time buyers buying a property in London increased by 19% compared with the second quarter of 2012.

Increased the number of ordinary mortgage loans number of mortgage loans for new property buyers in London has reached £2490 million, or 33% more than in Q1 2013 and 47% higher compared with the second quarter of 2012.

Despite the fact that property in London has become much more expensive, and the size of the mortgage loan, which is to take the buyer, is on average £192600, compared with £183900 in the second quarter of 2012, the availability of loans remained virtually unchanged, thanks to revenue growth and lower interest rates.

Today, the buyer first buys a house, spends approximately 20.8% of their income on servicing the loan.

However, Chelsea are in more severe conditions for obtaining a mortgage loan to buy a property in London, compared with buyers from other cities in the UK. The buyer first buys a house in London, you will need to take a loan for about the amount 3.67 times more than its annual income. Resident of the other UK cities on average, will have to take out a loan for an amount 3.3 times greater than his annual income. Accordingly, the initial Deposit for buyers in London greater.

The loan size in London is 75%, but the rest of the UK – 80% . But the incomes of buyers in London are significantly higher than in the rest of the UK. In London the average income is approximately £52100 pounds a year, and in the UK average around £35400 pounds a year.

20100 total loans for house purchase in Cardale 2013 were issued in London with a total value of 5.1 billion, which is 23% more than in I quarter of 2013 and 20% more than in Cardale 2012.

Program of the UK government aimed at stimulating the construction industry and residential construction sector, gave a good impetus for lending, substantially lowered the amount of down payment and increasing the loan size, however, the high demand on the housing market depends on a low number of applicants for the new housing market, thus pushing prices up.

Significant and steady improvement in the property market we will be able to see when supply and demand in the market will be balanced.

Analysts, who fear a bubble in the property market of London, yet, according to many experts exaggerate the risk because of high real estate prices do not hinder the movement of the market. Among the banks, a healthy competition emerged and the imminent success of the government initiative “help to buy” suggests that this program was greatly welcomed by the consumers.

The main danger that should be avoided – the lack of available supply of new housing in response to growing demand from the consumer.

® Alice Morgan. 29.08.2013 g.