Scotland sees fall in mortgage lending
December 24, 2008
According to recently released figures Scotland saw a fall in mortgage lending levels over the third quarter of this year, with mortgage lending approvals falling by around 18 percent over the quarter. However, according to the Council of Mortgage Lenders, Scotland still accounts for around 12 percent of all new UK house buying loans, which officials have said is a record high. 
The figures show that in the three months leading to the end of September, there were 5300 new loans approved for first time buyers, which equated to £481 million worth of lending. This was down from 6600 loans in the second quarter of the year, which equated to around £622 million worth of lending. The statistics also showed that the average first time buyer was putting down a deposit of around 16 percent for their mortgages, which comes about as a result of lenders demanding far greater deposits.
An official from the Council of Mortgage Lenders said “It has been less pronounced in Scotland. As the Crosby report recognised earlier this week, intervention is needed to restore the availability of mortgages and we hope to see its recommendations implemented swiftly. This would help address the mortgage supply issues, but consumer demand for loans will continue to fall away in the weaker economic outlook.”
The third quarter also saw remortgages falling in numbers, with eighteen thousand remortgaging loans worth £1.9 billion approved during the third quarter. It is thought that remortgaging levels may continue to decline as a result of consumers switching to lower rate standard variable mortgages when their existing deals come to an end.
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