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 www.ukfinance.org.uk for wider content and updates from UK Finance.

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  4. Home buyers in Scotland up 25% in the second quarter of 2017

Home buyers in Scotland up 25% in the second quarter of 2017

Published: 23 August 2017

In the second quarter in Scotland:

  • Home buyers borrowed £2.5bn, up 35% quarter-on-quarter and 18% year-on-year. They took out 18,800 loans, up 30% compared to the previous quarter and 15% on the second quarter 2016.
  • First-time buyers borrowed £1.1bn, up 29% on the first quarter and 17% on the second quarter last year. This totalled 9,500 loans, up 25% quarter-on-quarter and 15% year-on-year.
  • Home movers borrowed £1.5bn, up 39% quarter-on-quarter and 20% compared to a year ago. This totalled 9,300 loans, up 37% quarter-on-quarter and 16% compared to the same quarter in 2016.
  • Remortgage activity totalled £900m, down 7% on the first quarter but up 7% on the same quarter last year. This came to 7,300 loans, down 10% quarter-on-quarter but up 4% compared to a year ago.

Carol Anderson, Chair, UK Finance Scotland Mortgage Committee, commented:

There were more home buyers in Scotland in the second quarter of 2017 than any other quarter since 2007. First-time buyers have been a key driver of this, with two years of year-on-year growth.

With an economic climate of low interest rates, government schemes and competitive mortgage deals, the Scottish market is in a good position and open to business going forward.

Affordability in Scotland

First-time buyers typically borrowed £101,600 (£137,700 in the UK overall), up from £98,230 average the previous quarter. The average household income was £33,600 (£40,800 in the UK overall), down from £33,700 the previous quarter. The typical income multiple in Scotland was 3.09 (3.01 in the previous quarter), which compared favourably to the UK average of 3.58.

Home movers borrowed an average of £141,100 this quarter (£178,200 in the UK overall), up from £139,500 the previous quarter. The average household income of a home mover was £51,000 (£55,100 in the UK overall), up from £50,000. This meant the typical home mover income multiple in Scotland was 2.84, up from 2.83 the previous quarter and the UK average of 3.37.

Chart 1: Number of loans to home-owners, 2007-2017

 20170823 Scotland Q2 2017 MLT chart 1

Source: UK Finance Regulated Mortgage Survey

Download data

Table 1: Number of loans for house purchase and remortgage

 

House purchase

Remortgage

 

FTBs

Movers

Home owners

Q2 2016

8,300 8,000 7,000

Q1 2017

7,600 6,800 8,100

Q2 2017

9,500 9,300 7,300

Change compared to Q1 2017

+25.0% +36.8% -9.9%

Change compared to Q2 2016

 +14.5% +16.3%

+4.3%

Table 2: Value of loans for house purchase and remortgage

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q2 2016

910 1,210 840

Q1 2017

820 1,040 970

Q2 2017

1,060 1,450 900

Change compared to Q1 2017

+29.3% +39.4% +9.3%

Change compared to Q2 2016

+16.5% +19.8% +20.5%

 20170823 Scotland Q2 first-time buyer affordability infographic

20170823 Scotland Q2 home mover affordability infographic

Notes to editors

1. UK Finance is a new trade association which was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together 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.

2. Mortgage lending figures for Q3 will be released on Wednesday 22 November 2017.

Contact us

Gareth Hill

020 7438 8922

Sue Anderson

020 7438 8924

Bernard Clarke

020 7438 8923