Mortgage lending in Scotland stabilising, says CML

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Mortgage lending in Scotland stabilising, says CML

Fri 28th Aug 2009

Mortgage lending is stabilising in Scotland but there are still obstacles to recovery, according to the Council of Mortgage Lenders (CML).

Kennedy Foster, policy consultant at the organisation, said that it is encouraging to see that purchase loans were up 50 per cent in the second quarter compared to the first three months.

But he pointed out that rising unemployment, restricted access to lending and limited consumer demand are among the factors which may mean a slow recovery for the Scottish property market.

"Lending in the Scottish mortgage market is beginning to stabilise, albeit at very low levels. This is encouraging and mirrors the pick up in the housing market," he said.

The second [-]quarter results showed loans to first-time buyers were up 54 per cent and mortgages to home movers increased by 53 per cent.

Gross mortgage lending was up 26 per cent across the UK in July compared to June according to data released by the CML last week, but that figure was still 36 per cent under amount for July 2008.

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