Remortgages increased in 2011 due to homebuyer’s increased demand in Scotland.  The number of mortgages overall declined but remortgages increased sharply according to data from the Council of Mortgage Lenders Scotland (CML).  The 2011 data provided from the CML Scotland revealed a total of 44,500 mortgages.  In the final quarter of the year the volume of mortgage loans declined by 8 per cent when compared to the third quarter.

Remortgages increased to 36,900 in 2011 which is an 18 per cent increase for the year.  Overall homeowners remortgaging in Scotland made up 10% of the total for the UK.  Remortgage and new purchase approvals have remained difficult to obtain as lenders are still in a very tight lending mode with a cautious tone.  The cautious tone resulted in the last part of 2011 as warnings increased concerning a second recession and the economic condition in the eurozone declined.

Jim Dunn, chair of CML Scotland, remarked “Scotland, as well as the rest of the UK, continues to see a constrained mortgage market.

“However, it is encouraging to see positive signs, such as better affordability for first-time buyers and a decrease in average deposits for home movers, emerging.

“2012 will still be a challenging year but we hope to see the slight easing of constraints continuing throughout the year.”

Remortgages have declined recently as homeowners have had less incentive to remortgage with lenders pulling their cheapest deals.  The cautious tone of lenders has left homeowners content to sit and take on a wait and see attitude toward remortgage offerings.  The March meeting of the Bank of England’s rate regulators next week is expected to end with no change to the standard base interest rate.