Higher remortgaging levels seen in Scotland
Lending for house purchases, including buy-to-let properties, in Scotland declined as a whole in the first quarter but remortgaging levels rose.
Data from the Council of Mortgage Lenders (CML) showed that around 8,000 house purchase loans valued at £888 million were taken out in the country during the first three months of 2011.
This was a drop of 27 per cent by number and 29 per cent by value compared to the previous quarter, and is similar to the situation seen in the rest of the UK.
However, there was an increase in Scottish remortgaging between January and March of this year. A total of 8,800 loans for this purpose were approved in the three-month period, worth £900 million.
Equating to growth of 16 per cent in number and 13 per cent in volume, this rise was completely opposite to the general decline in the mortgage lending sector.
The figures come a fortnight after the CML published its UK housing and mortgage forecast for the rest of the calendar year up until the end of 2012.
According to the organisation, there will be "hesitant economic growth" for the remainder of 2011 but this will give way to a "moderately positive" environment as the next year begins.
Difficult financial conditions, soaring inflation and government spending cuts have resulted in a "weak and patchy" recovery from the recession, the CML's report said.
"Remortgaging activity has revived in recent months, and demand may build over the next 18 months. However, the prospect of interest rates staying low for longer dilutes the precautionary motive to remortgage and, as a result, we are not expecting much further increase in the near-term," it added.
"Overall, then, the outlook is for activity in the housing and mortgage markets to remain stable over the forecast period. Buy-to-let seems likely to progress positively relative to the overall market, reflecting strong rental demand."
Social media