According to recently released figures by the CML, Scotland is the place to go if you want to take out an IT contractor mortgage.
In the second quarter of 2010 the number of first time buyer mortgages leapt by 18% to 4,700 compared to the previous quarter. The value of the new mortgages equalled £419m, up 27% on Q1 and 36% more loans were granted to Scots moving home in Q2. Overall, new mortgages rose by 2,900 to 12,700, the highest percentage increase in the UK.
Scottish home movers also used less of their income (9.3%) to pay off their mortgage interest in Q2 compared to other areas of the UK.
First time buyer deposits shrank slightly from 23% to 21% in Q2 showing that some financial institutions are relaxing lending criteria. But, as in the rest of the UK, remortgage activity in Scotland remains very subdued.
Kennedy Foster, policy consultant for CML Scotland, said that recent months have shown positive signs for the Scottish housing market. However, the upward trend might not continue as regulatory and austerity pressures will affect Scotland just the same as other areas of the UK.
The chief executive of Homes for Scotland, Jonathan Fair, was slightly more cautious saying that although the latest figures are encouraging, it must be remembered that the base rate is currently at an all time low and normalised lending is still a distant dream.
The director of research at Savills, Jacqui Daly, says that the housing market in the UK will start to slow down for the rest of the year with the mortgage arena the least profitable. Her comment came after research by Santander found that nearly twice as many attempts by property owners to sell their house have failed than succeeded in the last year.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: Flag Scotland, Ecosse by erjkprunczyk
