The IBF/PwC Mortgage Market
Profile published todayshows that 3,551 new Irish residential
mortgages to the value of €624m were issued during the second quarter of
2011. The volume of new lending in Q2 is down 54.6% on the previous year.
While volume is up 9% compared to the previous quarter, the seasonal pattern of
mortgage lending can typically result in a higher level of lending from spring into summer.
The key home purchaser
segments of the market, First Time Buyers and Mover Purchasers, continue to
dominate this smaller market. Together they now account for over 78% of the
market by value and 70% by volume -- more than three-quarters of all
mortgage credit issued now goes to the home purchasing segments of the
Today's report says lenders
generally report that subdued underlying demand for new mortgage finance
continues to be driven by a range of factors.
These include uncertainty around
the employment situation and property price trends, together with a weakening
consumer sentiment. At the same time, lenders point to the need for prudent
lending with the all-important focus on the borrower’s capacity to repay.
Commenting on the data,
IBF (Irish Banking Federation)
chief executive, Pat Farrell, stated: “Current mortgage market activity
reflects the general macroeconomic environment. In these challenging times
manageable borrowing and prudent lending are to be expected.”
IBF/PwC Mortgage Market Profile can be viewed on the web at