Almost 28,000 mortgages issued in 2010
More than three-quarters of all mortgage credit now going to home purchasers
The IBF/PwC Mortgage Market Profile published today shows that 5,624 new mortgages to the value of €982 million were issued during the fourth quarter of 2010. This brings to close on 28,000 the total number of new mortgages issued in 2010 at a value of over €4.75 billion.
The volume of new lending in Q4 2010 is down 22.5% compared to the previous quarter and is down 43.5% on the previous year.
The key home purchaser segments of the market, first-time buyers and mover purchasers, together now account for 77% of the market by value and 67% by volume – albeit a smaller market. This means that more than three-quarters of all mortgage credit issued now goes to the home purchasing segments of the market.
Significantly, lenders report that borrowers seem to be increasingly better prepared – both in terms of the level of savings at their disposal to more than meet the deposit required and their measured approach to drawing down the approved loan. At the same time, lenders continue to point to the need for prudent lending with the all-important focus on the borrower’s capacity to repay.
Commenting on the data, IBF Chief Executive, Pat Farrell, stated:
“Against a very challenging economic background it can come as little surprise that mortgage market activity remains weak. The impact of the last Budget on consumer spending, the reduced level of consumer confidence during Q4 2010, as reflected in the 44.4 low recorded in December in the KBC Ireland/ESRI Consumer Sentiment Index and continuing uncertainty around future employment prospects are among the factors that have made manageable borrowing and prudent lending an ongoing challenge.”
The IBF/PwC Mortgage Market Profile can be viewed on the web at 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