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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Remortgaging up eight per cent in Scotland but housing activity is flat

Published: 23 November 2017

In the third quarter of 2017 in Scotland:

  • Home buyers borrowed £2.55 billion, up one per cent quarter-on-quarter and 15 per cent year-on-year. They took out 18,900 loans, the same as in the previous quarter but 11 per cent more than in the third quarter of 2016.
  • First-time buyers borrowed £1.04 billion, down two per cent on the second quarter but up 11 per cent on the third quarter last year. This totalled 9,300 loans, three per cent fewer quarter-on-quarter but eight per cent more year-on-year.
  • Home movers borrowed £1.51 billion, up three per cent quarter-on-quarter and 18 per cent compared to the same quarter in 2016. They took out 9,500 mortgages, two per cent more quarter-on-quarter and 13 per cent more year-on-year.
  • Remortgaging activity totalled £980 million, up eight per cent on the second quarter and nine per cent on the same quarter last year. This came to 8,000 loans, up eight per cent quarter-on-quarter and 10 per cent compared to a year ago.

Commenting on the data, Carol Anderson, the chair of UK’s Finance’s Scotland Mortgage Committee said:

“Remortgaging grew strongly in the spring and early summer as customers sought to lock into historically low borrowing rates and, although house purchase lending remained flat over the same period, there was solid growth year-on-year.  The Help to Buy scheme in Scotland is targeted at newly built homes, so home buyers, builders and lenders would all like more certainty about its future.  We therefore look forward to the Government’s announcement in due course.”

Affordability in Scotland

First-time buyers typically borrowed £101,000 (£139,500 in the UK overall), down from the average of £101,599 in the previous quarter.  The average household income was £33,608 (£41,009 in the UK overall), down from £33,676 the previous quarter.  The typical income multiple for first-time buyers in Scotland is 3.09, the same as the last quarter, which compared favourably to the UK average of 3.61.

Home movers borrowed an average of £141,000 this quarter (£180,995 in the UK overall), down from £141,575 the previous quarter.  The average household income of a home mover was £51,533 (£55,865 in the UK overall), up from £51,000.  This meant that the typical home mover income multiple in Scotland was 2.86, up from 2.84 but still considerably lower than the UK average of 3.39.

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

Table 1: Number of loans for house purchase and remortgaging in the third quarter

  House purchase Remortgage
FTBs Movers  
Q3 2016

8,600

8,400

7,300

Q2 2017

9,600

9,300

7,400

Q3 2017

9,300

9,500

8,000

Change compared to Q2 2017

-3.1%

2.2%

8.1%

Change compared to Q3 2016

8.1%

13.1%

9.6%

Table 2: Value of loans for house purchase and remortgaging in the third quarter

  House purchase Remortgage
FTBs Movers  
Q3 2016

940

1,280

900

Q2 2017

1,060

1,460

910

Q3 2017

1,040

1,510

980

Change compared to Q2 2017

-1.9%

3.4%

7.7%

Change compared to Q3 2016

10.6%

18.0%

8.9%

Affordability infographic

Ends

For further information please contact:
Press Office
020 7416 6750
press@ukfinance.org.uk

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.