As in the UK overall, lending to home-owners for house purchase in Scotland increased in the fourth quarter, with 15,400 loans in total being advanced, up by 3% compared to the third quarter of 2013 and up by 24% compared to the fourth quarter of 2012.
The value of these loans in this period also increased to £1.9bn, up 3% compared to the third quarter and an increase of 30% compared to the fourth quarter 2012.
Overall in Scotland in 2013, the total number of loans for house purchase was 54,100, up 15% compared to 2012. The value of these loans in total was £6.5bn, up 19% compared to 2012.
In the fourth quarter of 2013, 6,700 loans were advanced to first-time buyers in Scotland. This is the largest number in a single quarter since the fourth quarter of 2007. This was an increase of 3% compared to the third quarter of 2013 and up 26% on quarter four 2012.
A total of £680m was lent to first-time buyers in Scotland in the fourth quarter of 2013 which was up 3% compared to the second quarter and up 39% compared to the fourth quarter 2012.
First-time buyers in Scotland tended to borrow less relative to income compared to the UK overall, due to comparatively lower property prices. First-time buyers in Scotland typically borrowed 2.95 times their income, slightly down from 2.96 in the third quarter of 2013 but more than the 2.88 times borrowed in the last quarter of 2012. This is still considerably less than the 3.40 UK average in the last quarter of 2013.
First-time buyers spent 16.9% of their income on total mortgage payments in the fourth quarter, a slight decrease on the 17.1% in the third quarter of 2013 and down from 18.0% in the fourth quarter of 2012.
In the fourth quarter of 2013, the number of loans to home movers in Scotland was 8,600, up 4% compared to the third quarter and up by 19% compared to quarter four 2012. The value of these loans was £1.2bn, an increase of 3% compared to the third quarter and up 26% compared to the fourth quarter of 2012.
Overall for 2013, home movers took out a total of 30,100 loans in Scotland, an increase of 9% compared to 2012. In value this totalled £4.1bn, which was up 12% compared to 2012.
Remortgage lending
Remortgage lending in Scotland declined in the fourth quarter of 2013, with 6,800 loans advanced, down 12% in volume on the third quarter and down 4% compared to the fourth quarter in 2012. By value, £740m was advanced to remortgagors in the fourth quarter of 2013, a decrease of 8% in value compared to the third quarter but up 4% on the fourth quarter of 2012.
Overall in 2013, the total number of loans advanced for remortgage in Scotland was 27,300, down 6% compared to 2012. The total value of these loans was £2.8bn which was down 1% compared to 2012.
Iain Malloch, chair of CML Scotland, commented:
“The strong upward trend in lending seen in 2013 gives grounds for optimism, suggesting that improved mortgage availability and economic recovery are creating greater activity in the Scottish housing market. First-time buyers have been a crucial driver throughout 2013, and the CML anticipates this growth in the market will continue into 2014.”
