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| Source: Central Bank and Financial Services Authority of Ireland
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The Central Bank said today that Irish residential mortgage lending fell more €100m in April - -- the first monthly fall since the series began in 1990. The annual growth rate was down to 3.4 per cent in April , from 4.2 per cent in March.3 This was the lowest annual rate of increase since 1986.
The annual rate of increase in private sector credit (PSC) slowed to 2.4 per cent in April, from a revised 3.2 per cent in March. This is the lowest annual rate since January 1994.
The Bank said there was a net fall of over €100 million in residential mortgages (including securitised mortgages) during April, as new lending failed to keep pace with repayments on existing mortgages. This is the first time that residential mortgages have fallen since the monthly series began in 1990. This reflects low levels of activity in the housing market during the early part of the year.
The Irish Banking Federation (IBF) series on new residential mortgages showed that the value of new mortgages issued during Q1 2009 was 68 per cent lower than in the same quarter last year. The Irish results of the Eurozone Bank Lending Survey also point to a progressive tightening of credit standards on loans to households, alongside falling demand. The annual rate of increase in outstanding residential mortgages declined to 3.4 per cent in April, from 4.2 per cent in March - - the lowest annual rate of increase since 1986.
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| Source: Central Bank and Financial Services Authority of Ireland
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While repayments on credit cards exceeded new spending in April, outstanding indebtedness rose by €53 million as a result of the posting of stamp duty to credit card accounts during the month.
The annual rate of increase in outstanding indebtedness on credit cards fell further to 0.8 per cent in April, from 1.1 per cent in March.
