The property industry has been one of the worst hit in the recent economic recession. Mortgages have become tougher to receive as lenders are cautious in approving new mortgage loans. The mortgage market across UK has been negatively affected however some regions have witnesses a bigger decline than others. Mortgages in Scotland have been one of the Worst in UK according to the Council of Mortgage Lenders. They have claimed that mortgages in Scotland has declined the most and is lagging behind other regions in UK.
The average deposit required to secure a mortgage for a new property is higher in Scotland than ioj most other parts of UK. In Scotland prospective property buyers typically need to produce a 25 per cent deposit towards the property they are buying which is much higher than the rest of UK. The difference in price of the 12 months accounted for an extra £12,000 on average.
According to mortgage lenders, property lending has fallen by 44 per cent in the UK. However in Scotland the decline has been higher and it stands at almost 52 per cent. In spite of this report, property analysts are confident that the situation will begin to improve or art least stay at the same level.
Scotland is lagging behind the rest of UK may continue to stay behind other regions of UK even when the recovery in the property market begins. However property analysts expect the rate of decline in lending volumes to slow in coming months. In recent months there have been some encouraging results by some lenders who have developed innovative mortgage products to assist first-time buyers. however significant lending challenges still exist and there may be some time before the results start to improve.
Recent findings by Mortgage Lenders Council show that first-time buyers are still being locked out of home ownership despite falls in house prices and low interest rates.
In spite of this there are some signs of recovery in Scotland. A property firm in Scotland has registered an increase in the sales of new build properties, sparking fresh hope in the industry.