The expected seasonal dip during the early months of 2014 saw lending fall compared to the previous quarter, but there was a strong upward trend in Scotland when year-on-year comparisons are made, new CML data shows.

As in the UK overall, lending to home-owners for house purchase in Scotland saw the usual seasonal dip quarter-on-quarter with 12,300 loans in total being advanced. This was down 20% in comparison to the fourth quarter of 2013, but up 23% compared to the first quarter of 2013.

The value of these loans in this period also decreased quarter-on-quarter to £1.47bn, down 22% but an increase of 31% compared to quarter one 2013.

First-time buyers took out 5,900 new loans in Scotland in the first quarter of 2014. This was a decrease of 12% compared to the fourth quarter of 2013 but up 31% on quarter one 2013. These loans totalled £580m in this period which was down 15% compared to the previous quarter but up 45% in value compared to the first quarter of 2013.

First-time buyers in Scotland tended to borrow less relative to income compared to the UK overall, due to comparatively lower property prices. First-time buyers in Scotland typically borrowed 2.98 times their income, slightly up from 2.95 in the fourth quarter of 2013 and more than the 2.82 times borrowed in the first quarter of 2013. This is still considerably less than the 3.42 UK average for the first quarter of 2014.

First-time buyers spent 16.9% of their income on total mortgage payments in the first quarter in Scotland, a slight decrease on the 17.0% in both the fourth quarter of 2013 and the first quarter of 2013.

In the first quarter of 2014, home movers in Scotland took out 6,400 new loans, a quarter-on-quarter decrease of 26% but up 16% compared to the first quarter of 2013. The value of these loans was £890m, down 26% compared to the fourth quarter but up 25% compared to quarter one 2013.

Remortgage lending in Scotland declined quarter-on-quarter with a total of 6,100 new loans, down 10% in volume on the fourth quarter 2013 but up 7% compared to the first quarter in 2013. By value, £670m was advanced to remortgagors, a decrease of 9% compared to the fourth quarter of 2013 but up 18% on quarter one 2013.

Linda Docherty, chair of CML Scotland, said: “Year-on-year lending shows a strong upward trend in Scotland, which gives grounds for optimism mortgage lending will continue to grow in 2014. First-time buyers were a crucial driver throughout 2013, and this is appears to be continuing, up nearly a third year-on-year.

“Affordability for first-time buyers is better than the UK average, suggesting there are still comparatively favourable conditions in the Scottish market for those seeking to own a home.”