Scottish Q1 mortgage lending up 7 per cent to six year high

The total was down 22 per cent quarter-on-quarter but up 1 per cent year-on-year.

According to latest Council of Mortgage Lenders data, 13,500 loans were taken out over the first three months of the year, down 22 per cent on the previous quarter but up 7 per cent compared to the first quarter 2015.

First-time buyers borrowed £660m, down 24 per cent on the fourth quarter 2015 but up 10 per cent on the first quarter last year. This totalled 6,200 loans, down 23 per cent quarter-on-quarter but up 11 per cent year-on-year.

Home movers borrowed £1.1bn, down 21 per cent quarter-on-quarter and down 4 per cent compared to a year ago. This totalled 7,300 loans down 22 per cent quarter-on-quarter but up 4 per cent on quarter one 2015.

Remortgage activity totalled £780m, down 1 per cent on the fourth quarter 2015 but up 13 per cent compared to a year ago. This came to 6,400 loans, down 5 per cent quarter-on-quarter but 5 per cent up compared to a year ago.

Carol Anderson, CML Scotland chair, said: “Seasonal factors often affect lending levels in the first quarter of the year, but there are encouraging indicators in Scotland, as all lending types showed growth year-on-year. 2016 saw the strongest first quarter in a year for house purchase lending since 2008 and, with affordability conditions continuing to be favourable, we would expect gradual year-on-year growth in Scotland to continue throughout 2016.”

Scotland was the focus of a recent CML News & Views article that took a more in-depth look at how lenders will work with the new Scottish government on issues surrounding housing in all tenures. It can be read here.