Home loans fall by a third

Published on Thursday 21 August 2008 10:25

THE number of mortgages issued by lenders is a third lower than this time last year, new data published today has shown.

The Council of Mortgage Lenders said that there were 18,500 loans for house purchases issued in Scotland between April and June, compared to 28,200 in the same period last year.

First-time buyers accounted for 36 per cent of the mortgages issued, slightly above the same period last year.

Although the mortgage market in Scotland has contracted, it is still faring better than the overall UK market, where there was a 46 per cent year-on-year decline in the second quarter.

As is common in the second quarter, the number of mortgages issued was 18 per cent ahead of the first three months of the year, following significant declines in the fourth quarter of 2007.