House purchase lending in Scotland up 17 per cent year-on-year in fourth quarter - CML

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

It showed first-time buyers took out 8,000 loans – 2 per cent down on the previous quarter but up 14 per cent on the last quarter of 2014.

The £870 million borrowed by them in the period was down 2 per cent on the previous quarter but up 14 per cent on the fourth quarter of 2014.

While home mover lending totalled £1.4bn, down 4 per cent on the previous quarter but up 18 per cent on the fourth quarter 2014.

The number of loans in the period was 9,200, down 5 per cent quarter-on-quarter but up 14 per cent on year-on-year.

Remortgage lending went up by volume quarter-on-quarter and year-on-year.

Annual home-owner house purchase lending in Scotland totalled 64,800 loans, up 9 per cent on 2014. This came to £8.5bn, up 14 per cent on 2014.

First-time buyers took out 30,000 loans, worth £3.3bn, up 8 per cent by volume and 12 per cent by value, on the previous year.

Home movers took out 34,800 loans, worth £5.2bn, up 9 per cent by volume and 15% by value, compared to 2014.

Remortgage lending came to £3.1bn, up 18 per cent on 2014. This totalled 26,200 loans, up 12 per cent on the previous year.

Linda Docherty, CML chair for Scotland, said: “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.”