Scottish home buyer borrowing down 3 per cent

According to latest data from the Council of Mortgage Lenders, 16,800 loans were taken out for home purchase over the three months to December, down 1 per cent compared to the previous quarter and 3 per cent on the fourth quarter 2015.

First-time buyers borrowed £910 million, down 3 per cent on the third quarter but up 5 per cent on the fourth quarter last year.

This totalled 8,400 loans, down 2 per cent quarter-on-quarter but up 5 per cent year-on-year.

Home movers borrowed £1.3 billion, up 1 per cent quarter-on-quarter but down 7 per cent compared to a year ago.

This totalled 8,400 loans, unchanged quarter-on-quarter but down 10 per cent compared to the same quarter in 2015.

Remortgage activity totalled £870 million, down 2 per cent on the third quarter but up 10 per cent on the same quarter last year.

This came to 7,200 loans, down 1 per cent quarter-on-quarter but up 7 per cent compared to a year ago.

Throughout the course of last year, home buyers in Scotland borrowed £8.3 billion for house purchase, down 3 per cent on 2015.

They took out 63,500 loans, down 2 per cent compared to the year before.

First-time buyers borrowed £3.4 billion, up 5 per cent on the previous year. This totalled 31,400 loans, up 5 per cent on 2015.

Home movers borrowed £4.9 billion, totalling 32,100 loans, down 7 per cent by value and 8 per cent by volume on 2015.

Remortgage activity totalled £3.4 billion, up 10 per cent on 2015. This came to 27,900 loans, up 6 per cent in 2015.

Carol Anderson, CML Scotland chair, said: “First-time buyer lending continues to show healthy annual growth in Scotland. Overall, the picture is of a steady market, with affordability comparing favourably with the UK as a whole.”

First-time buyers typically borrowed £99,800 (£135,000 in the UK overall), almost unchanged from the £100,000 average the previous quarter.

The average household income was £33,500 (£40,200 in the UK overall), down from £33,700. The typical income multiple in Scotland of 3.03 (3.02 in the previous quarter) also compared favourably to the UK average of 3.56.

Affordability metrics for home movers saw the typical amount borrowed this quarter was £140,000 (£172,500 in the UK overall), up from £135,300 the previous quarter. The average household income of a home mover was £50,700 (£54,900 in the UK overall), down from £51,000.

This meant the typical home mover income multiple in Scotland was 2.80, up 2.76 from the previous quarter and the UK average of 3.29.