First-time buyers in Scotland enjoyed the strongest surge in lending activity in the second quarter of 2015 as market was rebounding in all regions of the UK, the latest CML data shows.
Scottish borrowers making their first step on the property ladder saw an over 50 per cent quarterly rise in both the number of mortgage loans and their value.
Compared to the previous year, lending to Scottish first-time buyers grew by 11 per cent, which was a good boost considering the subdued annual growth experienced everywhere else.
The typical loan size for first-time buyers in Scotland was £101,515 in the second quarter, up from £94,795 in the first quarter. The typical gross income of a first-time buyer household was £34,000 also up compared to £33,677 in the first quarter.
First-time buyers’ payment burden in the second quarter was 17.2 per cent of gross income to cover capital and interest payments, up on the first quarter’s 17 per cent but lower than the 18.4 per cent UK average.
Wales was next on the quarterly growth table, with a 29 per cent surge in lending activity for first-time buyers. However, on a yearly basis there was a decline of 6 per cent.
The typical loan size for Welsh first-time buyers was £102,207 in the second quarter, up from £101,150 in the first quarter. The typical gross income of a first-time buyer household was £32,526 also up compared to £32,320 in the first quarter.
First-time buyers’ payment burden in the second quarter was 17.7 per cent of gross income, down on the first quarter’s 18 per cent, and the UK average.
First-time buyers in Northern Ireland enjoyed a quarterly increase in lending of 15 per cent and there was a 12 per cent rise compared to the second quarter of 2014.
The typical loan size for first-time buyers in the country was £81,275 in the second quarter, up from £78,300 in the first quarter. The typical gross income of a first-time buyer household was £30,000, up compared to £29,352 in the first quarter.
The relatively low level of interest rates saw first-time buyers’ payment burden remaining relatively low in the second quarter at 16.2 per cent of gross income being spent to cover capital and interest payments, lower than the first quarter’s 17.0 per cent and the UK average.
While London‘s market was also on the path of recovery from April to June 2015, first-time buyers here fared worse than in other parts of Britain.
Whilst there was a 12 per cent rise on the quarter, house purchase lending to Londoners aiming for the first rung of the property ladder fell by 10 per cent on the year.
The typical loan size for first-time buyers in the capital was £224,994 in the second quarter, up 5 per cent on the first quarter and 6 per cent on the same quarter last year. The typical gross income of a first-time buyer household was £58,685, up 5 per cent compared to the first quarter and 6% up on the second quarter of 2014.
First-time buyers’ payment burden in the second quarter was 19.4 per cent of gross income being spent to cover capital and interest payments, down on the first quarter’s 20.3 per cent but higher than the UK average.
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