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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Scotland house purchase lending up 23% in second quarter

Published: 24 August 2016

In the second quarter:

  • Home buyers borrowed £2.2bn for house purchase, up 23% quarter-on-quarter but down 1% year-on-year. They took out 16,500 loans, up 23% on the previous quarter but down 4% compared to the second quarter 2015.
  • First-time buyers borrowed £920m, up 42% on the first quarter and 2% on the second quarter last year. This equated to 8,500 loans, up 39% quarter-on-quarter and 4% year-on-year. 
  • Home movers borrowed £1.2bn, up 11% quarter-on-quarter but down 5% compared to a year ago. This totalled 8,100 loans, up 11% quarter-on-quarter but down 9% on quarter two 2015.
  • Remortgage activity totalled £850m, up 9% both on the first quarter 2016 and the second quarter 2015. This came to 7,100 loans, up 11% quarter-on-quarter and 4% compared to a year ago.

Carol Anderson, CML Scotland chair, commented:

First-time buyers continue to be a key driver in the market. This is the 19th successive quarter of growth in first-time buyers compared to a year earlier, and is the highest quarterly number of first-time buyer loans since mid-2007. So, although the data reflects pre-EU referendum, it suggests the Scotland market is in good shape and open for business moving forward.

Scotland house purchase and remortgage lending in quarter one

Affordability metrics for first-time buyers in Scotland remains better than for the UK overall. The typical amount borrowed this quarter compared to the previous was £99,800 (£132,800 in the UK overall) , up from £97,800, and the typical average household income of a first-time buyers was £33,600 (£40,000 in the UK overall), up from £33,400. This meant the income multiple in Scotland was 3.03 an increase compared to 2.97 the previous quarter but lower than the UK average of 3.51.

Affordability metrics for home movers in Scotland similarly remain better than for the UK overall. The amount borrowed this quarter was £139,500 (£167,400 in the UK overall), up from £136,000 the previous quarter, and the typical average household income of a home mover was £49,700 (£53,600 in the UK overall), down from £51,200. This meant the income multiple in Scotland was 2.84, up compared to 2.68 the previous quarter, but lower than the UK average of 3.26.

Chart 1: Number of loans to home-owners, 2007-2016

 20160824 Scotland Q2 2016 press release chart one

Source: CML Regulated Mortgage Survey      

Download data

Table 1: Number of loans for house purchase and remortgage

 

House purchase

Remortgage

 

FTBs

Movers

Home owners

Q2 2015

8,200

8,900

6,800

Q1 2016

6,100

7,300

6,400

Q2 2016

8,500

8,100

7,100

Change on Q1 2016

+39.3%

+11.0%

+10.9%

Change on Q2 2015

+3.7%

-9.0%

+4.4%

Table 2: Value of loans for house purchase and remortgage

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q2 2015

900 1,280 780

Q1 2016

650 1,100 780

Q2 2016

920 1,220 850

Change on Q1 2016

+41.5% +10.9% +9.0%

Change on Q2 2015

+2.2% -4.7% +9.0%

 

20160824 Scotland Q2 2016 FTBs affordability infographic

20160824 Scotland Q2 2016 home movers affordability infographic

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 97% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 trillion.

2. Source: CML Regulated Mortgage Survey

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. Please see the mortgage statistics timeline on our website for further information.

4. Data for the third quarter of 2016 will be released on Wednesday 23 November 2016.

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