Number of mortgages on offer continues to fall

Published on Wednesday 26 November 2008 20:41

THE number of mortgages issued in Scotland fell by 18 per cent between July and September, figures revealed yesterday.

The data found 15,100 loans for house purchases were granted in the third quarter of 2007.

The Council of Mortgage Lenders (CML) Scotland said this was a 18 per cent decrease compared with the number of mortgages issued between April and June.

Despite the drop – that is roughly in line with the rest of the UK – the CML said Scotland continued to account for 12 per cent of new mortgages granted in the UK.

This was the same figure as the second quarter and a record high for Scotland.

The statistics found there were 5,300 loans worth 481 million granted to first-time buyers in the third quarter.

This was down from 6,600 loans worth 622 million handed out in the second quarter. Figures found the average Scot borrowed 75 per cent of the property's value in the third quarter and 2.78 times their income.

CML Scotland said remortgaging also declined in the third quarter, with 18,000 loans worth 1.9 billion issued. Earlier this week, a report into mortgage financing by former HBOS chief Sir James Crosby advised direct government intervention to address the country's mortgage situation.

CML Scotland policy consultant Kennedy Foster backed the Crosby Report findings but revealed: "The year-on-year decline in house purchase lending has been less pronounced in Scotland."