The number of Irish mortgages paid in 2014 is at a similar level to 1974/75 - 40-year low.
We reported last month that Irish residential mortgages approvals in the nine months to September 2014 on an annualised basis were as low as in 1977.
Data from Banking and Payments Federation Ireland (BPFI) today show that by the end of September 2014, year-to-date mortgage drawdowns were at 14,525 compared with 18,462 approvals (based on a three-month moving average).
The BPFI in its mortgage monitor [pdf] focuses on third quarter data and does not directly provide year-to-date-data, presumably to avoid inconvenient news.
The organisation highlights double digit improvements and it says just over 6,300 mortgages were drawn down between July and September (nearly 5,800 of which related to property purchase), up 41% from the level recorded in Q3 2013 while the total value of new mortgage lending in the third quarter of 2014 was €1.1bn, representing a 50% increase in total value of lending compared to the same period in 2013. "The value of mortgages drawn down increased to their highest level since Q3 2010, which was also the last time that quarterly drawdowns exceeded €1bon. It has to be noted that percentage increases should be interpreted in the context of a housing market recovering from a relatively low nominal base."
The annualised drawdowns of 19,367 compare with 18,313 in 1974 and 21,041 in 1975 according to data from the Department of the Environment, Community & Local Government.
In 2006, the peak year of the bubble, mortgage loan numbers were at 111,253 with a value of €25.5bn compared with 11,200 in 2011 - the lowest since 1972 - with a value of €2.1bn.
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