Scottish mortgage lending `down`

28 November 2008

The decline in mortgage lending in Scotland continued during the third quarter of the year, new figures indicate.

Produced by the Council of Mortgage Lenders (CML) Scotland, they show that 15,100 home loans were granted north of the border during the three-month period.

This represents a decrease of 18 per cent compared to the previous quarter.

Meanwhile, there were 5,300 mortgages issued to first-time buyers (FTBs) during the period, worth a combined total of £481 million.

The average FTB put down a deposit of 16 per cent, while the interest repayments on their debt consumed 18.2 per cent of their income.

Commenting on the figures, CML policy consultant Kennedy Foster said: "As the Crosby report recognised earlier this week, intervention is needed to restore the availability of mortgages and we hope to see its recommendations implemented swiftly."

Earlier this month, the Bank of England`s Monetary Policy Committee voted in favour of a 150 basis point cut in interest rates in an effort to free up credit to consumers and kick-start the market.

Tags: mortgages, mortgage lending, mortgage

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