Mortgage lending in Scotland 'in same situation as rest of UK'

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Mortgage lending in Scotland 'in same situation as rest of UK'

Thu 26th May 2011

Statistics released today (May 26th) by the Council of Mortgage Lenders (CML) revealed that the Scottish market is in a similar situation to the rest of the UK.

Figures show that lending for prospective homeowners was at its lowest for two years at the beginning of 2011, with most people choosing to remortgage their properties amid fears of a rise in interest rates.

The CML has reported a year-on-year decline from the early months of 2010, as well as a 27 per cent reduction in lending between the final quarter of last year and the first quarter of 2011.

However, offering encouragement to people looking to get their first step on to the property ladder, the council also noted an increase in first-time buyers.

Prospective homeowners looking to purchase their first home accounted for 40 per cent of the total mortgage deals approved in Scotland during the first quarter, which is five per cent higher than the last three months of 2010.

The CML has recently called for affordability tests, income verification and interest rate stress testing for all people who apply for mortgages.

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