25 May 2017

Scots rush to remortgage - could we save you money?

Scots rush to remortgage - could we save you money?

The mortgage rate war has led to a resurgence in remortgage activity in Scotland.

Deals offering record-low interest rates of less than 1% are currently available as lenders battle to attract business.

The amount of money being handed out to existing homeowners north of the border has hit a five-year quarterly high, according to latest figures from the Council of Mortgage Lenders.

Remortgage activity in Scotland in the January-March period was worth £940million - up 9% on the fourth quarter and ahead by 21% on the same quarter last year. 

This totalled 7,900 loans - up 11% on the fourth quarter and ahead 23% compared to a year ago.

Borrowing rises

Meanwhile, first-time buyers in Scotland borrowed £810million in January-March - up 25% on the same months of last year.

This totalled 7,600 loans - up 23% year-on-year.

The new figures also showed Scots borrowed a total of £1.8billion in the January-March period for house purchases - up 5% on January-March 2016.

They took out 14,300 loans - up 6% on the first quarter a year ago.

Carol Anderson, chair of CML Scotland chair, said: "Competitive mortgage rates have spurred on a resurgence in remortgage activity which was at a five-year quarterly high in Scotland."

She added that the CML expects  home-buying activity to gain momentum into the summer months.

First-time buyers

First-time buyers in Scotland in the first quarter typically borrowed £98,000 (£133,000 in the UK overall).

The average household income was £33,600 (£40,000 in the UK overall).

The typical amount borrowed by home movers north of the border in the quarter was £139,500 (£175,000 in the UK overall).

 The average household income of a home mover was £50,000 (£54,600 in the UK overall).

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