Remortgaging similarly saw an increase expected to be due to concerns over the increase in interest rates.
CML Scotland policy consultant Kennedy Foster said:
“The picture for Scotland looks very similar to that of the rest of the UK with subdued house purchase lending and a resurgence in remortgaging. We expect remortgage activity to grow throughout the UK further in the next quarter as recent expectations of a rise in base rate, although unfounded, led to an increase in remortgage approvals in the first quarter.”
8,000 loans, worth £888 million, were taken out for house purchase in the first quarter of 2011 in Scotland, a 27% fall by number (29% by value) compared the previous quarter and 19% lower (by volume and value) than the first quarter of 2010. Given the fact that lending in the early months of last year was depressed following the end of the earlier stamp duty concession, the fall from the first quarter of 2010 represents a substantial year-on-year decline.
For further details view: http://www.cml.org.uk/cml/media/press/2931