The mortgage market in the UK has recovered from the crisis

Gross mortgage lending in the UK remained unchanged in September and amounted to approximately £16.2 billion. However, this is 41% more than in September 2012, when gross mortgage lending was £11.5 and slightly lower than in August 2013, when net lending totalled £16.4 billion.

Gross lending secured on residential property in the UK in Q3 2013 is estimated at £49.3 billion , which is 17.6% more than in the second quarter of 2013 and 32% more than in the third quarter of 2012. This is the highest figure since the third quarter of 2008.

Mortgage rates will remain low over the next three years, which, accordingly, will improve conditions for borrowers. Lenders, being in a competitive environment, have started to offer more flexible terms of lending and reduce the size of the down payment for potential borrowers. As a result, we have seen significant improvement in credit conditions, in the end, this led to the fact that the borrower is taking the mortgage loan can save around £1080 pounds a year in comparison with the credit terms granted in 2012.

Forecast for the development of mortgage lending in the short term, over the rainbow. The state of the economy is now much better than few years ago. Thanks to the efforts of the government and improved consumer confidence in UK property market, which, respectively, will give a new impetus to the mortgage market.

An obstacle to the recovery of the mortgage market is the slow growth of wages, low family budgets and limited savings. In conditions of economic instability people are simply unable to save money for a down payment, even 5% of the property value (this is the main condition for participation in the program is the support of the government Help to buy). Under these conditions, many families do not even dream to embark on the path of homeownership, and add to the already crowded rental market. Fortunately, prices for rental property in the UK, though growing but not keeping pace with inflation and rental housing remains the only viable way for families with a small budget.

® Alice Morgan 18.10.2013