Over 12,000 mortgages drawn down during the second quarter of 2009

  • Q2 shows seasonal pick-up over Q1
  • First-time buyers account for 1 in 4 of all new mortgages
  • Home purchaser segments increase market share

The IBF/PwC Mortgage Market Profile published today shows that 12,686 new mortgages to the value of some €2.2 billion were issued during the second quarter of 2009. This shows an increase in activity over the previous quarter in keeping with seasonal trends, as well as an increase to record levels in the share of overall activity for the main home purchaser segments of the market.

Although down by some 64% year on year, the volume of new lending in the second quarter (Q2) of 2009 is up 15.4% compared to the previous quarter – reflecting the seasonal pattern of stronger mortgage lending in the second quarter of the year. The following are among the key features of the Q2 2009 data.

First-time buyers (FTBs) now account for 1 in 4 of all new mortgages issued. With a 25% share of the overall market by volume, they have consistently increased their market share over each of the last six quarters.
The key home purchaser segments of the market – FTBs and Mover Purchasers – together now make up 60% of the total market by value.
The Residential Investment Letting market continues to decline and is the only segment not to record a quarter on quarter increase.
Commenting on the data, IBF Chief Executive, Pat Farrell, stated:

“While the overall level of mortgage activity continues to reflect the very challenging economic environment, it is reassuring to see that those focused principally on home purchase, first-time buyers and mover purchasers, now have a record share of the total market – albeit a smaller market. By contrast, the investment end of the market continues to show the greatest decline.”
The IBF/PwC Mortgage Market Profile can be viewed on the web here. (PDF File)

Note: 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