Mortgage market in Scotland sees improvement

Recently released data has shown that the property and mortgage markets in Scotland have shown surprising improvement in the second quarter of this year, with officials expressing surprise over the figures that have been released by industry groups.

Figures were released by the Council of Mortgage Lenders, and it appears that things have improved with both first time buyers and home movers in Scotland. Officials have said that they will be keeping a close eye on the property and mortgage markets in Scotland for the remainder of the year, and could find that the markets outperform those in the rest of the UK if the performance continues as it has done so far.

The Council of Mortgage Lenders said that in the second quarter of this year the number of mortgage agreements for first time buyers increased by an impressive 18 percent, bringing the total for the second quarter to 4700. The total value of these mortgages came to £419 million, and this reflected an increase in total value of 27 percent compared to the first quarter of the year.

The figures from the Council of Mortgage Lenders also showed great improvements in the mortgage and property markets for those that were moving house. Over the course of the second quarter of the year 8000 loans were taken out, and this reflected an increase of 36 percent, which has surprised many experts.

It is thought that part of the reason behind the improvements in these markets is that lenders in Scotland appear to be getting more relaxed when it comes to granting and approving mortgage loans. The average deposit requirement for first time buyers has fallen from 23 percent to 21 percent, and some think that this may have helped to renew hope and confidence amongst buyers.

Tags: mortgage, Mortgage loan, scotland, mortgage markets, value, confidence, council of mortgage lenders, time buyers

Mortgage figures fall in July

July saw a decrease in the amount of mortgages being taken out, according to figures released recently by the Council Mortgage Lenders (CML).

The value of those mortgages that were given also fell, the CML statistics showed.

However, when not accounting for lending for house purchase or remortgages, lending overall actually grew to £7.8 billion in July, its highest-ever figure.

Michael Coogan, CML director general, commented: “A slight fall in lending between June and July has emerged for the third year in a row, so of course we cannot read too much into a single month’s figures.

“But the long-anticipated slowdown in the housing and mortgage markets may now be beginning to materialise.”

Affordability is “ever more stretched” he added, but Britons will not see any let up in the financial troubles they face soon.

Meanwhile, Halifax’s latest house price index has shown that the average price of a house in England and Wales has risen to nearly £200,000.

Tags: single month, slight fall, United States Department of Housing and Urban Development, economics, General, year, Council Mortgage Lenders, mortgage markets