From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to for wider content and updates from UK Finance.

  1. Home
  2. News
  3. Press releases
  4. Proportion of income needed for home-mover mortgages in Scotland lower than anywhere else in the UK

Proportion of income needed for home-mover mortgages in Scotland lower than anywhere else in the UK

Published: 25 August 2010

Home movers in Scotland in the second quarter of 2010 needed to use less of their income to cover their mortgage interest than anywhere else in the UK, according to new data by the Council of Mortgage Lenders. The proportion fell to 9.3%, the lowest share anywhere in the UK since 1996.

CML data shows that 12,700 loans for house purchase (worth £1.4 billion) were advanced in Scotland in the second quarter, up from 9,800 (worth £1.1 billion) in the first quarter. This was a larger increase than the rise seen in the UK as a whole but the first quarter had been artificially weak across the whole country due to the end of the stamp duty holiday at the turn of the year. House purchase loans were also up from 11,500 (worth £1.2 billion) in the same period a year ago.

First-time buyers took out 4,700 loans (worth £419 million) in Scotland from April to May, up 18% in volume and 27% in value from January to March and up 9% in volume and 13% in value from the same period last year. There were modest signs of a further easing in lending criteria in the second quarter with first-time buyer deposits shrinking for the second quarter running - they needed on average 21% deposit compared to 23% in the first quarter. In the UK as a whole there have been recent signs that the easing has slowed, so we do not necessarily expect this trend to continue next quarter.

Home movers in Scotland took out 8,000 loans (worth £1 billion) in the second quarter - up 36% in volume and 34% in value from the first quarter and 11% in volume and 15% in value on the second quarter in 2009. Home movers saw a modest decrease in the size of deposits with the average being 29%, and a slight increase in income multiples to 2.67.

Reflecting a similar trend across the UK, remortgaging activity in Scotland remains extremely subdued. The 8,000 loans for remortgage (worth £800 million) were up 14% in both volume and value from January to March, but down 11% from a year ago.

CML Scotland policy consultant Kennedy Foster said:

"There have been some positive signs for the housing and mortgage markets in Scotland in recent months with increased activity and reduced deposits and it's encouraging to see that for home movers, mortgage interest payments as a share of income currently cost the least out of any region of the UK. But the hard times are not completely behind us yet. Regulatory and funding pressures will affect Scotland as much as the rest of the UK and the upward trend we have seen in the second quarter may not continue to the end of the year."

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.4 million mortgages in the UK, with loans worth over £1.2 trillion.

2. Source: CML/Banksearch.

3. The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.

4. Data for the third quarter will be released on Wednesday 24 November 2010.


Contact us

Jayne Chichester

020 7438 8922

Bernard Clarke

020 7438 8923