Renewed activity further reflected in new mortgage approvals

  • December approvals up 29.6% on last year

The level of new mortgage approvals recorded for December 2012 by IBF provides further evidence of renewed activity in the mortgage market.

The IBF Mortgage Approvals Report shows that a total of 1,446 mortgages were approved by lenders here during December 2012 to the value of €234 million.  This represents a volume increase of 29.6% and a value increase of 29.3% over the same month in 2011.  The month-on-month picture shows a reduction in the numbers – most likely due to December being a shorter than normal working month and a front-loading of activity into November ahead of the ending of mortgage interest relief.

The vast majority (92%) of the 1,446 mortgage approvals was for property purchase, which itself showed a year-on-year increase of over 40%; the balance of approvals was for re-mortgages and top ups.

Commenting on the data, IBF’s Director of Public Affairs, Felix O’Regan, stated:

“As the IBF Mortgage Approvals Report is a lead indicator of future mortgage market activity, we expect this evidence of renewed activity to be reflected in the actual mortgage drawdown figures for Q4 2012 when the IBF/PwC Mortgage Market Profile is published in February.”

The IBF Mortgage Approvals Report can be viewed here.

Notes: Data collection for the IBF Mortgage Approvals Report began in August 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders

Monthly and annual changes are calculated based on changes in the three-month moving average.

The Irish Banking Federation (IBF) is the principal voice of 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.

Contact: Nuala Buttner, Q4 Public Relations, tel 085 1744275; IBF tel 01-6715311

IBF Members Agree New Initiative to Reaffirm the Priority of Home Loan Mortgages

  • New IBF initiative is designed to help distressed borrowers maintain their home loans by restructuring their additional unsecured debt on an appropriate basis

The Irish Banking Federation (IBF) today announced a new initiative which is designed to help as many customers as possible to stay in their homes.  This new initiative will involve lenders and customers working together both to prioritise the home loan payment and to restructure the customers’ remaining debts on an appropriate basis.

John Reynolds, President, IBF said: “It is apparent that the level of personal short-term unsecured debt that many home loan customers have accumulated is significant and in many cases unmanageable, when the customers’ total income and total indebtedness is considered.

“This new initiative is designed to encourage customers to work with both their secured and unsecured lenders with the overall objective of keeping families in their homes.  In order to optimise the new approach being taken, IBF will be seeking the support of all lenders.”

The IBF advice remains that all customers facing financial difficulty should engage proactively with their mortgage lenders and provide the necessary information to enable their position to be assessed.

A copy of the Protocol on Unsecured Credit Principles is available here.

Note:  The Irish Banking Federation (IBF) is the principal voice of 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.

Contact: Nuala Buttner, Q4 Public Relations, tel 085 1744275

 

New mortgage approvals continue to increase

  • Approvals up 25% overall on same period last year
  • 8.6% increase on a monthly basis

The level of mortgage approvals continues to increase as confirmed by the second monthly report in the new IBF data series which tracks the number of new mortgages approved by mainstream lenders.

The IBF Mortgage Approvals Report shows that a total of 2,010 mortgages were approved by lenders here during November 2012 to the value of €346 million.  This represents a volume increase of 25% and a value increase of 23.9% compared with the same month in 2011; it also represents a volume increase of 8.6% on a monthly basis.*

The vast majority (94%) of the 2,010 mortgage approvals was for property purchase, which itself showed a year-on-year increase of 35.4%; the balance of approvals was for re-mortgages and top ups.

Data collection for the IBF Mortgage Approvals Report began in August 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders.

Commenting on the data, IBF’s Director of Public Affairs, Felix O’Regan, stated:

“The second month of data in this new series confirms continued growth in the number of new mortgages approved by mainstream lenders. As the IBF Mortgage Approvals Report is a lead indicator of future mortgage market activity, we expect this trend to be reflected in the mortgage drawdown figures for Q4 2012 when the IBF/PwC Mortgage Market Profile is published next month.  This evidence of renewed mortgage market activity is welcome.  Approvals data for December and the following months will enable us to establish a clearer picture of the trend.”

The IBF Mortgage Approvals Report can be viewed on the web here.

* Monthly and annual changes are calculated based on changes in the three-month moving average.