Mortgage Approvals Increase

  • 1,875 mortgages approved in July to the value of €325m
  • Key category of approvals for house purchase is dominant

The latest figures from the IBF Mortgage Approvals Report, published by IBF, show that banks approved 1,875 mortgages to the value of €325 million during the month of July.

The following are the key figures:

  • A total of 1,875 mortgages were approved in July, of which 1,734 (92%) were for house purchase.
  • The number of mortgages approved increased by 11.9% on an annual basis (from July 2012) and by 13.5% on a monthly basis (from June 2013).
  • The value of mortgages approved in July was €325 million, of which €311 million (96%) was for house purchase.
  • The value of mortgage approvals grew by 9.3% on an annual basis and by 16.3% on a monthly basis.

IBF welcomes the sustained growth seen in both the volume and value of mortgage approvals in July.

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. The report can be viewed 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 PR, tel 085 1744275

IBF Statement on Mortgage Arrears

Today’s Central Bank figures show an unwelcome increase in the overall number of mortgage accounts in arrears for principal dwelling houses (PDHs).  They also show a welcome continued decline in early stage arrears.

The increase to 97,874 (12.7%) in the number of accounts in arrears of over 90 days unfortunately reflects further deterioration in the financial circumstances of those already in or falling into arrears.  This deterioration is particularly evident in longer-term arrears of over 180 days.  The overall level of arrears is likely to increase further before it finally peaks.

It is encouraging that the rate at which people are falling into arrears (less than 90 days) continues to fall – down 3.3% on the previous quarter, amounting to a decline of 10% since the peak in Q3 2012. The reduction for the third consecutive quarter in 91-180 days is also encouraging.

  • More than three-quarters (76.5%) of the 79,357 restructured PDH accounts are meeting their repayment terms; and a similar proportion (77%) of the 21,563 Buy-to-Let (BTL) restructures in place are meeting repayment terms
  • While interest only and reduced payment arrangements remain the leading types of restructuring, growth is evident in other forms of restructuring

The number of distressed customers being offered these longer-term, sustainable resolutions can be expected to increase over the coming months.  However, it is important to note that the transition from short-term forbearance to longer-term sustainable resolutions takes time to conclude: detailed assessment of each case is central as is the borrower’s consideration of the resolution proposed.  It is also important to bear in mind that the framework enabling effective action by lenders to resolve mortgage arrears has just very recently been put in place in the form of the revised customer contact provisions of the Code of Conduct on Mortgage Arrears and the measure to address the lacuna in respect of repossessions created by the Justice Dunne judgement.

IBF member banks are extremely mindful of the impact of the resolution process on individual borrowers and their families.  The complexity and scale of the challenge of mortgage arrears resolution is great.  Notwithstanding this, banks continue to work assiduously with their distressed customers to maximise the number of sustainable mortgages and to deal effectively with unsustainable mortgages; and they are working closely with the Central Bank in delivering such solutions within the framework of the mortgage arrears resolution targets.

Contact: Jillian Heffernan, Marketing Communications Manager, ph: 01 474 8835 / 087 9016880

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

IBF Housing Market Monitor shows evidence of stabilisation in housing market

  • Sale listings and transactions show increase – but regional variations evident
  • Rise in mortgage approvals and drawdowns

The IBF Housing Market Monitor Q2 2013, published today by the Irish Banking Federation (IBF), points to a number of indicators of stabilisation in the housing market.  These include increases in the number of dwellings listed for sale, the number of property transactions and in the level of mortgage approvals and drawdowns – although regional variations are very evident.

And in his commentary accompanying the IBF Housing Market Monitor, ESRI Economist, David Duffy, believes that the stabilisation of the housing market is in keeping with the evidence emerging of a slow improvement in the economic outlook for Ireland.

Drawing on various published data on the residential housing market to provide a composite analysis on where the market may be going, the IBF Housing Market Monitor shows the following in Q2 2013 compared to the same period in the previous year:

  • increase in the number of properties listed for sale
  • 8% increase in the number of housing market transactions
  • 9.7% increase in the level of mortgage approvals and a smaller 0.7% in the level of drawdowns

More so than other regions, Dublin and Leinster remain key drivers behind these trends – with improving activity levels primarily reflecting a more positive Dublin market.  Dublin also contributes to the volatile trend  in the number of new commencements.

Analysing a range of statistics under the three key headings of housing supply, housing prices and housing transactions, and assessing these on a composite basis, David Duffy writes in his commentary:

“At some point a more positive view of the outlook for the market, reflected in people’s price expectations, will translate into increasing demand for homeownership………….House price expectations will play a key role in determining the outlook for the housing market.  List prices from the daft.ie database may provide some evidence that expectations may be beginning to change – this is particularly evident in Dublin.”

“Having weakened in Q1 2013, as activity slowed following a surge at the end of 2012 due to the ending of mortgage interest relief, mortgage approvals and drawdowns both recovered in the second quarter.  Mortgage approvals rose by an annual rate of 10% while drawdowns increased by a more moderate 1%.”  

“The stabilisation of the housing market is in keeping with the evidence emerging of a slow improvement in the economic outlook for Ireland.  Although uncertainty remains about the international economic outlook, an increasing number of economic indicators are showing improvement rather than continued decline.  Many of these relate to factors that underpin the housing market.”

The IBF Housing Market Monitor is published quarterly and can be viewed on the IBF website 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.

Further Information: Jillian Heffernan, IBF Marketing Communications Manager,

Ph: 01 474 8835 / 087 9016880

Significant Quarterly Increase in New Mortgage Lending

  • 3,229 mortgages issued in Q2 2013 to the value of €518 million
  • Home purchasers account for over 90% of all new mortgage credit

The latest figures from the IBF/PwC Mortgage Market Profile, published today, show that the number of new mortgages issued in Q2 2013 has increased by 56.1% on the previous quarter.

In total, 3,229 new mortgages to the value of €518 million were issued during the second quarter of 2013. With the first quarter traditionally the weakest in any year, followed by recovery in the second quarter, the latest figures reflect a very modest 0.1% growth in Q2 2013 compared to the same quarter in 2012. However, this is the first time year-on-year growth of any kind has been recorded in the second quarter since 2006.

The home formation segments of the market – first-time buyers and mover purchasers – continued to dominate the market accounting for over 85% (85.2%) of new mortgages issued.  This compares with only 35% of new mortgages five years earlier.  In effect, over 90% (91.1%) of all mortgage credit now goes to the home purchasing segments of the market.

The average loan size now stands at just over €160,000, up marginally (0.2%) on Q1 2013 and down 1.4% year-on-year.

As lenders continue to report a healthy pipeline of borrower interest, IBF has welcomed the significant quarterly uplift recorded in both the volume and value of new mortgages issued in Q2 2013.

The IBF/PwC Mortgage Market Profile can be viewed on the IBF website here.

Notes: 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: Jillian Heffernan, Marketing Communications Manager, IBF, ph: 01 474 8835 / 087 9016880

Noel Brett Appointed as New CEO of Irish Banking Federation

The Irish Banking Federation (IBF) today announced the appointment of Noel Brett as its new Chief Executive.

Mr. Brett, who is currently Chief Executive of the Road Safety Authority (RSA), will take up his new role within the next three months. Mr. Brett has been CEO of the RSA since 2005 prior to which he was Assistant Chief Executive with the Western Health Board from 2001, having joined the Health Board in 1999. He held a number of senior positions in Social Services with Local Authorities in the UK from 1989 to 1999. Mr. Brett is a native of Castlebar, Co. Mayo and a graduate of University College Dublin and the University of Kent.

Welcoming the new appointment, John Reynolds, President, IBF said:

“I would like to welcome Noel to the role of Chief Executive of IBF. He brings with him a wealth of general management and policy development experience. He takes up his new role at a critical time as we strive to return the Irish banking sector to profitability and build step by step on the progress that has been made to date in restoring confidence and rebuilding trust in our sector. I wish him every success in his new role.”

ENDS/

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: Jillian Heffernan, Marketing Communications Manager, ph: 01 474 8835 / 087 9016880