The IBF/PwC report on the Irish mortgage market published today shows that 12,189 new mortgages to the value of some €2.1 billion were issued during the third quarter of 2009 down 56.4% from 27,937, in the same quarter in 2008. Meanwhile, AIB today announced that it provided finance for 40% of all residential property transactions in the third quarter of 2009.

While the figures from he Irish Bankers' federation and accountants PricewaterhouseCoopers show a reduction in overall activity of 3.9% from the previous quarter, they also show that the number of mortgages issued to first-time buyers (FTBs) has increased for the second successive quarter.  The following are among the key features of the Q3 2009 data:

• First-time buyers’ (FTB) share of the overall market continues to increase and now stands at 35.6% by value and 29.8% by volume.  This means that almost one in every three new mortgages now goes to a first-time buyer.

• The key home purchaser segments of the market - -  FTBs and Mover Purchasers - -  together now account for almost two-thirds (64%) of the market by value and 50% by volume.  This means that one in every two new mortgages now goes to the home purchasing segment.

• Mortgages for residential investment letting purchases continued to decline in both absolute and market share terms.

Because the investment market is effectively dead at present, the ratios for the other segments has inevitably improved. There is seldom a cloud without some silver lining.

Commenting on the data, IBF Chief Executive, Pat Farrell, said: "While the overall level of mortgage lending in Q3 shows little change from the previous quarter, the rate of decline in activity that has been so evident over recent quarters now appears to be moderating.  Significantly, we have seen an increase of nearly 500 over the previous quarter in the number of mortgages issued to first-time buyers and this important segment continues to build market share.  Not surprisingly, the investment end of the market continues to decline.”

AIB today announced that it provided finance for 40% of all residential property transactions* in the third quarter of 2009.  It said this level of new business activity is strong evidence of the AIB commitment to the overall economy and support for the housing market in particular.

It is also said it's worth noting that AIB is responsible for one in three of all new first time buyer mortgage drawdowns in the market in the same quarter of 2009.  When compared with the same period last year, AIB’s overall market share of first time buyer new mortgage drawdowns has more than doubled.   

Marian McCarville, Head of Credit Products, AIB Bank said: “While the demand for mortgage finance is still well below the levels seen in 2007 and 2008, AIB is continuing to see a steady flow of good quality mortgage applications from both first time buyers and those moving home.  We have also seen a shift in the type of property that first time buyers are looking to buy in 2009 with sanction requests for second hand homes now the most popular category at 57%.

 “We are committed to continuing our strong support of the mortgage market and in particular for first time buyers.”