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Mortgage lending tumbled by almost 50% last year

PAMELA DUNCAN The Irish Times
Mortgage lending tumbled by almost 50% last year - Ireland - Morgage


MORTGAGE LENDING fell by almost 50 per cent last year, reflecting the impact that the wider economic situation has had on the mortgage sector.



In total, 46,000 mortgages were issued in 2009, at a value of over €8 billion. The overall mortgage book now stands at €148 billion, according to the Irish Banking Federation’s mortgage market profile.

Close to 10,000 new mortgages were issued in the fourth quarter of 2009, a decline of 18 per cent on the previous quarter, totalling €1.76 billion. The number of mortgages drawn down in 2009 declined by almost 60 per cent on the 2008 figures.

The percentage of mortgages relating to residential investments and remortgages has fallen consistently since 2007. In contrast, 70 per cent of all mortgage credit went to home purchasers last year.

First-time buyers now comprise the largest share of the mortgage market, with 35 per cent of market volume and 41 per cent of its value.

The average values of mortgages issued are back to levels last seen in early 2005.

However, the value of mortgages sought by first-time buyers have not decreased in line with the drop in property prices.


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