Page last updated at 12:39 GMT, Wednesday, 24 February 2010

Home loans lowest for 16 years

Estate agent's window
The number of home loans taken out in Scotland last year fell by 14,000

The number of mortgages taken out in Scotland last year was the lowest since records began in 1993.

The Council of Mortgage Lenders (CML) said 47,000 home loans were granted in 2009, 23% fewer than in 2008.

However, there was a pick-up in the number of mortgages taken out in the final three months of last year.

A total of 14,200 loans were issued between October and December, a rise of 4% on the previous quarter and 2,600 more than the same time in 2008.

The rate of increase in mortgage approvals in Scotland was slower than in the rest of the UK.

Between October and December last year the increase in house purchase activity in the UK was 9%, five percentage points ahead of the Scottish figure.

First-time buyers

The slower recovery in Scotland has meant that its share of the UK home loans market fell to 9% for 2009 as a whole, down from a high of 12% in 2008.

The number of first-time buyers in Scotland was unchanged at 5,400 in the fourth quarter, although the value of lending increased in the last three months from £474m to £479m.

Throughout 2009, 17,900 first-time buyers took out a loan, which is a fall of 4,500 on the previous year and again the lowest since the CML began compiling the data.

In line with the rest of the UK, remortgaging volumes remained low in Scotland.

There were 9,000 remortgage loans, worth £900m between October and December, a drop of 1,000 on the previous three months.

For the whole of 2009, there were 39,000 loans for remortgage, that was almost half the number in 2008.

The Council of Mortgage Lenders said it did not expect an increase in lending activity immediately.

CML Scotland policy consultant Kennedy Foster said: "Funding conditions remain challenging, economic recovery is fragile both in Scotland and in the UK as a whole, and with little likelihood of interest rates rising this side of an election, many on low variable rates have little incentive to remortgage."



Print Sponsor


SEE ALSO
Sharp fall in new mortgage loans
23 Feb 10 |  Business
House prices 'continue to rise'
16 Feb 10 |  Scotland
Stamp duty rise 'hits borrowing'
18 Feb 10 |  Business
Spring boost for mortgage lending
26 Aug 09 |  Scotland

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific