The mortgage market in Scotland is following in the footsteps of the UK, seeing subdued numbers in the third quarter. The Council of Mortgage Lenders reported numbers which indicated relief was farther off than hoped for. Although there was something to be encouraged about, as a 5 per cent increase was seen for home loan approvals. The total came to 13,500 for the quarter, worth approximately 1.7 billion pounds.

The number of loans as well as the value of those loans both have fallen compared to the same time last year. The CML has indicated the drop in figures is due to the market being compared to one that was over inflated at the end of 2009. This was from the effects of the stamp duty holiday last year.

There was however, an almost 10 per cent increase in home movers. Almost 9,000 loans were provided, at a value of 1.1 billion pounds.

The easing of lending criteria is something that is occurring as 2010 continues, to first time buyers and others.

The CML has issued a word of caution regarding loan to value ratios, saying: "This appears to now be reversing with the average loan to value ratios decreasing in the third quarter to 77% from 79% for Scottish first-time buyers and to 70% from 71% for home movers in Scotland."

Kennedy Foster of the Scotland CML remarked on the state of the market, saying: "Mortgage lending levels in Scotland and the UK as a whole are likely to remain subdued for the remainder of this year and into 2011.

"We are seeing little consumer demand which, coupled with issues around funding capacity, means that the mortgage market will remain constrained for some time."