Scotland Mortgage Lending sees increase during Third Quarter
According to the latest data from mortgage lenders, Scotland experienced a rise in mortgage lending for the third quarter. The rate was much lower than the entire UK rate. Almost 1000 more loans were approved for the purchase of homes compared with the last quarter. The second quarter total was 11,500. An 8% increase took place last quarter. The entire UK saw mortgage lending increase 16% during the third quarter.
First time buyers and home movers both increased activity for mortgage loans in the third quarter. A rise of 7% occurred in regard to first time buyers, or a total of 4,600. The loan amount totaled 429 million pounds.
First timers usually had a 20% deposit on the property value, which was a slight decrease over the 21% they had during the second quarter. The loan to value for Scotland property has now entered the range of the UK average.
CML Scotland policy consultant Kennedy Foster commented on the low, but stable status of the Scotland property market, saying: "The mortgage market in Scotland is currently stable, albeit at a low level.
"We anticipate growth is likely to remain slow going forward, although welcome developments - such as smaller deposits - have emerged and a Scottish mortgage indemnity scheme for new-build properties is being introduced.
"The uncertain economic outlook and low levels of consumer confidence will likely result in a continuing constrained mortgage market in Scotland, as in the UK in general."