IBF data confirms mortgage market adjustment to more sustainable lending levels continues

Over 40,000 new mortgages issued in Q3 2007
First-time buyers retain 19%+ share of market
Continued growth in switching activity

The latest in the series of the IBF/PwC Mortgage Market Profile shows that new lending continues to moderate to more sustainable levels in a mortgage market that is still growing in overall terms. Published today by the Irish Banking Federation (IBF), the data also shows that switching activity continues to increase.

This sixth in the series of the IBF/PwC Mortgage Market Profile shows that 40,992 new mortgages to the value of almost €9 billion were issued during the third quarter of 2007. This reflects an increase in value of 2.9% over the second quarter of 2007 together with a marginal decline in volume, and a year-on-year comparative reduction in activity across most market segments. Within this overall picture a number of key findings emerge from an analysis of the published data:

The resilience of the first time buyers (FTB) segment of the market is evident, broadly holding its overall share at 19.1% of all new lending (by volume).
The volume of switching activity continues to increase and now accounts for 17.4% of all new mortgage lending (by volume).
Residential investment letting has picked up to record growth of 15.2% between the second and third quarters of 2007, accounting for 19.4% of new lending (by value).
Commenting on the data, IBF Chief Executive, Pat Farrell, stated: “While the mortgage market continues to adjust to more sustainable levels of new lending, the market continues to grow in absolute terms with the total mortgage book now standing at €136 billion. At the same time, the increased level of switching activity again serves to underline market competitiveness.”
The IBF/PwC Mortgage Market Profile can be viewed on the web at www.ibf.ie.

Note to Journalists: The Irish Banking Federation (IBF) is the leading representative body for the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Further Information: Felix O’Regan, Head of PR and Public Affairs, IBF, tel. 01-6715311, 087 6481644

Actions in respect of Certain Solictors’ Practices – IBF Position

The Irish Banking Federation (IBF) member institutions will continue to work with the system of solicitors’ undertakings, and IBF is consulting with its member to determine how this system can be further strengthened. To this end, and as further clarity emerges around all of the relevant aspects, IBF will also continue to engage constructively with all the relevant stakeholders in this process, including the Property Registration Authority, the Law Society and the Financial Regulator. In parallel, the banking industry continues to work with the Property Registration Authority and the Law Society in the drive towards e-conveyancing. 

Note to Journalists: Irish Banking Federation (IBF) is the leading representative body for the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here. 

Further Information: Felix O’Regan, Head of PR and Public Affairs, IBF, tel. 6715311, 087 6481644