CML reports increased remortgage activity in Scotland

Posted on Thursday, June 1 by Joy Tibbs

Remortgage activity in Scotland increased during the first quarter of 2017, totalling £940 million, according to the Council of Mortgage Lenders (CML). This was a 9% increase on the fourth quarter and a 21% rise compared with the same quarter of 2016. A total of 7,900 remortgage loans were advanced, up 11% quarter-on-quarter and 23% year-on-year.

Home buyers borrowed £1.8 billion for house purchase during the first quarter, down 15% quarter-on-quarter and 5% year-on-year. They took out 14,300 loans, down 14% compared with the previous quarter and 6% compared with the first quarter of 2016.

First-time buyers in Scotland borrowed £810 million, down 10% compared with the fourth quarter but up 25% compared with the first quarter of 2016. They took out 7,600 loans, down 8% quarter-on-quarter but up 23% year-on-year.

Home movers borrowed £1 billion, down 19% quarter-on-quarter and 6% year-on-year. They took out 6,700 loans, down 19% quarter-on-quarter and 8% year-on-year.

Carol Anderson, CML Scotland chair
, said: “There tends to be a seasonal lull in lending in the first quarter of the year, and this year is no exception. Even so, competitive mortgage rates have spurred on a resurgence in remortgage activity which was at a five year quarterly high in Scotland. First-time buyer lending also showed an increase on the first quarter of last year.

“The decline in home mover activity is not unexpected given the surge in activity last year to avoid the changes in Land and Buildings Transaction Tax, but we expect home buying activity to gain momentum into the summer months.”

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