Mortgage lending falls marginally in Scotland

Home Purchase Lending is Bottoming Out in Scotland

Home Purchase Lending is Bottoming Out in Scotland

New data shows that mortgage approvals for home purchases fell marginally in Scotland last year.

The Council of Mortgage lenders (CML), Scotland reported that a total of 46,800 mortgage loans were approved for home purchases in 2010, a fall of less than 1 percent over 2009 numbers.

Overall lending in the UK rose by 3 percent during the same period in 2010, data showed.

Remortgage approvals, however was in line with the rest of UK trend and dropped by 23 percent in 2010, over the same period, last year.

Mortgage lending dropped significantly in the fourth quarter of 2010, the data revealed. Home purchase lending slipped by 22 percent in the fourth quarter while remortgaging went down by 13 percent over third quarter. Home purchase lending for first time buyers dropped by more than a third over the same period last year while the fall was less steep at 22 percent compared to the third quarter of 2010.

“The challenge of the dysfunctional mortgage market applies across the UK and the impact which this has on first-time buyers and second steppers is no different in Scotland”, said Kennedy foster, CML Scotland policy consultant.

Earlier this week, the British Bankers Association (BBA) had revealed that home purchase mortgage lending by high street banks were down 29 percent in January compared to the same period in 2010.

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