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  4. House purchase lending in Scotland up 17% year-on-year in fourth quarter

House purchase lending in Scotland up 17% year-on-year in fourth quarter

Published: 24 February 2016

New CML data on the characteristics of lending in Scotland in the fourth quarter of 2015 outlining mortgage lending to first-time buyers, home movers and remortagors.

Lending in the fourth quarter 2015:

  • Home-owner house purchase lending totalled 17,200 loans, down 4% in the third quarter but up 14% in the fourth quarter 2014.
  • First-time buyers took out 8,000 loans - 2% down on the previous quarter but up 14% on the last quarter of 2014. First-time buyers in the period borrowed £870 million - down 2% on the previous quarter but up 14% on the fourth quarter 2014. 
  • Home mover lending totalled £1.4bn, down 4% on the previous quarter but up 18% on the fourth quarter 2014. The number of loans in the period was 9,200, down 5% quarter-on-quarter but up 14% on year-on-year.
  • Remortgage lending went up by volume quarter-on-quarter and year-on-year. 

Lending in 2015:

  • Annual home-owner house purchase lending in Scotland totalled 64,800 loans, up 9% on 2014. This came to £8.5bn, up 14% on 2014.
  • First-time buyers took out 30,000 loans, worth £3.3bn, up 8% by volume and 12% by value, on the previous year.
  • Home movers took out 34,800 loans, worth £5.2bn, up 9% by volume and 15% by value, compared to 2014.
  • Remortgage lending came to £3.1bn, up 18% on 2014. This totalled 26,200 loans, up 12% on the previous year.

Linda Docherty, CML chair for Scotland, commented:

The sustained year-on-year growth in house purchase lending seen since 2012 continued in Scotland this quarter. This meant more first-time buyers and home movers in 2015 took out a loan to purchase a home than in any year since 2008. With an economic climate of low interest rates and competitive mortgage deals, we would expect this growth in the Scottish market to continue into 2016. 

Chart 1: Loans for home-owner house purchase and for remortgage by value

 20160224 Scotland Q4 2015 chart one

Source: CML Regulated Mortgage Survey (April 2005 onwards), CML Economics      

Download data

Chart 2: Number of loans for house purchase and proportion of FTBs and home-movers

 20160224 Scotland Q4 2015 chart two

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download data

Table 1: Fourth quarter lending for home-owner house purchase and remortgage

  Number of house purchase loans % change Value of house purchase loans, £m % change Number of remortgage loans % change Value of remortgage loans, £m % change
Fourth quarter 2015 17,200   2,250   6,700   790  
Third quarter 2015 17,900 -3.9% 2,320 -3.0% 6,600 +1.5% 800 -1.3%
Fourth quarter 2014 15,100 +13.9% 1,920 +17.2% 5,700 +17.5% 650 +21.5%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Table 2: Fourth quarter first-time buyer lending and affordability measures

 

Number of loans

% change

Value of loans £m

% change

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital and interest payment as % of   income

Fourth quarter 2015

8,000

 

870

 

100,000

34,036

84.0%

3.01

9.1%

16.7%

Third quarter 2015

8,200

-2.4%

890

-2.2%

99,295

33,246

83.8%

3.02

9.4%

17.2%

Fourth  quarter 2014

7,000

+14.3%

760

-14.5%

97,200

33,965

82.8%

2.90

9.9%

16.8%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Table 3: Fourth quarter home mover lending and affordability measures

 

Number of loans

 

Value of loans £m

 

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital and interest payment as % of   income

Fourth quarter 2015

9,200 

 

1,380

 

135,295

50,790

75.5%

2.73

7.0%

16.4%

Third quarter  2015

 9,700

-5.2%

1,440

-4.2%

135,000

51,395

75.4%

2.70

6.9%

16.4%

Fourth quarter  2014

8,100

+13.6%

1,170

+17.9%

128,142

50,766

74.8%

2.64

7.7%

16.5%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Chart 3: Number of home-owner remortgages

 20160224 Scotland Q4 2015 chart three

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download data

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% 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 first quarter of 2016 will be released on Wednesday 25 May 2016.

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