House purchase lending increases in Scotland by 17%

House purchase lending in Scotland has increased by 17% since 2014, according to new data based on the fourth quarter of 2015 which takes in first-time buyers, home movers and remortagors.
The Council of Mortgage Lenders (CML) has released the following stats:

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, 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.”

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

chart1

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

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

chart 2

 

Source: CML Regulated Mortgage Survey (April 2005 onwards)

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

 last chart

Source: CML Regulated Mortgage Survey (April 2005 onwards)

 

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