Resurgence in remortgaging in Scotland, reports CML

Posted on Thursday, May 26 by Joy Tibbs

The mortgage market in Scotland started 2011 in a similar position to the UK as a whole, according to data released by the Council of Mortgage Lenders (CML) Scotland.

House purchase lending was at its lowest level for two years and remortgaging increased due to interest rate rise concerns.

The CML recorded that 8,000 loans, worth £888 million, were taken out for house purchase in the first quarter of 2011 in Scotland. This was a 27% fall in number (29% in value) compared with the previous quarter and a 19% drop in volume and value than during the first quarter of 2010.

As in the rest of the UK, remortgaging picked up in Scotland during the first three months of the year. Around 8,800 loans worth £900 million were taken out for remortgage, an increase of 16% in volume and 13% in value from the previous quarter.

CML Scotland policy consultant Kennedy Foster said: “The picture for Scotland looks very similar to that of the rest of the UK with subdued house purchase lending and a resurgence in remortgaging.

“We expect remortgage activity to grow throughout the UK further in the next quarter as recent expectations of a rise in base rate, although unfounded, led to an increase in remortgage approvals in the first quarter.”

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