Scotland business

First-time buyer numbers 'at seven-year high'

Mortgage application form Image copyright Thinkstock
Image caption CML said the Scottish mortgage market enjoyed "comparatively favourable conditions" during the quarter

The number of first-time buyers in Scotland has reached a seven-year high, according to lenders.

The Council of Mortgage Lenders (CML) said there were 7,500 first-time buyer loans in Scotland in the second quarter of this year.

That was 29% up on the previous three months, and 23% up on the same period last year.

CML said it was the largest quarterly number of first-time buyers in Scotland since 2007.

The council said lending in Scotland had remained "robust".

This was despite the introduction of new mortgage market rules at the end of April requiring lenders to conduct full affordability checks on mortgage applicants.

First-time buyers in the period borrowed £790m - up by 39% on the previous quarter and by 32% on the same period last year.

Home movers

The number of home-mover loans rose by 34%, to reach 8,600, with movers typically borrowing 2.69 times their gross income.

That figure was slightly up on the previous three months but well behind the UK level of 3.09.

The typical loan size for home movers rose by nearly £8,000 to £128,600.

Remortgage lending in the quarter declined in Scotland, compared with the previous quarter.

CML Scotland chairwoman Linda Docherty said: "Lending in Scotland has remained robust this quarter, despite the introduction of new FCA (Financial Conduct Authority) mortgage market rules.

"We will, however, need more time to understand the full effect of the new rules.

"House purchase lending has been the main catalyst of increased activity, with larger quarter-on-quarter growth in Scotland than the UK overall.

"The comparatively favourable conditions in the Scottish market has meant that first-time buyer numbers continue to grow to levels not seen since 2007."

Related Topics

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites