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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Highest number of first-time buyers in Scotland quarterly since 2007

Published: 23 November 2016

In the third quarter:

  • Home buyers borrowed £2.2bn for house purchase, up 5% quarter-on-quarter but down 5% year-on-year. They took out 17,100 loans, up 5% on the previous quarter but down 4% compared to the third quarter 2015.
  • First-time buyers borrowed £940m, up 3% on the second quarter and 6% on the third quarter last year. This equated to 8,600 loans, up 4% quarter-on-quarter and 5% year-on-year. 
  • Home movers borrowed £1.3bn, up 6% quarter-on-quarter but down 11% compared to a year ago. This totalled 8,500 loans, up 6% quarter-on-quarter but down 12% on quarter three 2015.
  • Remortgage activity totalled £890m, up 6% on the previous quarter and 11% on the same quarter in 2015. This came to 7,300 loans, up 4% quarter-on-quarter and 11% compared to a year ago.

Carol Anderson, CML Scotland chair, commented:

First-time buyers continue to be a key driver in the market with more loans advanced to new home-owners than any quarter since 2007. This quarter also saw a four year high in remortgage activity and quarter-on-quarter growth in home movers so all lending types have performed strongly over the summer months.

This is the first quarter post the EU referendum and the market appears resilient so far. It may take time to fully gauge the full impact but currently the Scotland market is in good shape and open for business moving forward.

Scotland house purchase and remortgage lending

There were more loans advanced to first-time buyers in this quarter in Scotland than any other since the third quarter of 2007. First-time buyers also borrowed more this quarter than any other quarter since CML records began. 

Affordability metrics for first-time buyers in Scotland remain better than for the UK overall. The typical amount borrowed this quarter remained unchanged from the previous quarter at £100,000 (£134,900 in the UK overall), and the typical average household income of a first-time buyers increased slightly from £33,600 to £33,700 (£40,500 in the UK overall). This meant the income multiple in Scotland was 3.02 a slight decrease compared to 3.03 the previous quarter and lower than the UK average of 3.54.

Affordability metrics for home movers in Scotland similarly remain better than for the UK overall. The amount borrowed this quarter was £135,300 (£172,800 in the UK overall), down from £139,500 the previous quarter. The typical average household income of a home mover was £51,000 (£55,200 in the UK overall), up from £49,700. This meant the income multiple in Scotland was 2.76, down compared to 2.84 the previous quarter and lower than the UK average of 3.27.

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

20161123 Scotland Q3 2016 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

Q3 2015

8,200

9,700

6,600

Q2 2016

8,300

8,000

7,000

Q3 2016

8,600

8,500

7,300

Change on Q2 2016

+3.6%

+6.3%

+4.3%

Change on Q3 2015

+4.9%

-12.4%

+10.6%

Table 2: Value of loans for house purchase and remortgage

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q3 2015

890 1,440 800

Q2 2016

910 1,210 840

Q3 2016

940 1,280 890

Change on Q2 2016

+3.3% +5.8% +6.0%

Change on Q3 2015

+5.6% -11.1% +11.3%

20161123 Scotland FTBs affordability infographic

20161123 Scotland Q3 2016 infographic affordability v2

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 fourth quarter of 2016 will be released on Wednesday 22 February 2017.

Contact us

Gareth Hill

020 7438 8922

Sue Anderson

020 7438 8922

Bernard Clarke

020 7438 8923