Scottish Housing Market Showing Positive Signs

Recent data published by the Council of Mortgage Lenders suggest positive movement in the housing and mortgage market in Scotland.

Like everywhere around the country, remortgaging in Scotland remains subdued, but house purchasing activity is showing promising signs.

The number of mortgage loans advanced for house purchase in the second quarter of 2010 totalled 12,700, which is 2,900 more than in the previous quarter.

Unlike the rest of the country, the number of advanced first time buyer mortgages was 4,700, which increased by 18% from the first quarter, totalling £419 million. The report suggested slight improvement in lending criteria as the average deposit required decreased from 23% in the previous period to 21%.

Scottish home movers took up 8000 mortgage loans, a 36 % more than in the first quarter, despite the fact that size of an average deposit being 29% and note much improvement in income multiples calculations, which is on average around 2.67.

In addition, it appears that home movers in Scotland used less of their income to cover mortgage interests than the rest of Great Britain.

Commenting on the figures, Kennedy Foster, CML Scotland policy consultant noted “positive signs for the housing and mortgage markets in Scotland in recent months”, but added “the hard times are not completely behind us... and the upward trend we have seen in the second quarter may not continue to the end of the year."

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