- First-time buyers now account for 30% all new mortgages
- 1 in every 2 mortgages taken out by home purchaser segments
The IBF/PwC Mortgage Market Profile published today shows that 12,189 new mortgages to the value of some €2.1 billion were issued during the third quarter of 2009. While the figures show a reduction in overall activity of 3.9% from the previous quarter and 56.4% year on year, they also show that the number of mortgages issued to first-time buyers (FTBs) has increased for the second successive quarter. The following are among the key features of the Q3 2009 data:
First-time buyers’ (FTB) share of the overall market continues to increase and now stands at 35.6% by value and 29.8% by volume. This means that almost one in every three new mortgages now goes to a first-time buyer.
The key home purchaser segments of the market – FTBs and Mover Purchasers – together now account for almost two-thirds (64%) of the market by value and 50% by volume. This means that one in every two new mortgages now goes to the home purchasing segment.
Mortgages for residential investment letting purchases continued to decline in both absolute and market share terms.
Commenting on the data, IBF Chief Executive, Pat Farrell, stated:
“While the overall level of mortgage lending in Q3 shows little change from the previous quarter, the rate of decline in activity that has been so evident over recent quarters now appears to be moderating. Significantly, we have seen an increase of nearly 500 over the previous quarter in the number of mortgages issued to first-time buyers and this important segment continues to build market share. Not surprisingly, the investment end of the market continues to decline.”
The IBF/PwC Mortgage Market Profile can be viewed here.
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