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New Mortgage Lending Continues to Grow in Q4 2013

  • 5,206 mortgages issued in Q4 2013 to the value of €896 million
  • Home purchasers account for almost 90% of all new mortgages
  • €2.5 billion in new mortgage lending drawn down during 2013

The IBF/PwC Mortgage Market Profile published today shows that 5,206 new mortgages to the value of €896 million were issued by lenders here during the fourth quarter of 2013. This brings to 14,985 the total number of mortgages issued in 2013 to the value of €2.5 billion.

These latest figures show an increase of over 16% in volume when compared to Q3 2013.  As the following graph shows, this latest quarterly increase represents the third consecutive quarter of growth – albeit coming from a relatively low base. As anticipated, the figures show a year-on-year decline of 13.9%, reflecting the significant front loading of activity in Q4 2012 ahead of the expiration of mortgage interest relief at the end of 2012.

MMP Feb 2014 1

The key home purchaser segments of the market, First Time Buyers and Mover Purchasers, continue to dominate the market accounting for almost 90% (87.8%) of new mortgages issued.  In effect, over 90% (93%) of all mortgage credit now goes to the home purchasing segments of the market.

As the following graph indicates, the pipeline of approved mortgages is relatively strong, providing evidence of underlying growth in the market.

MMP Feb 2014 2

Commenting on the latest data, Noel Brett, IBF Chief Executive, stated:

“With three consecutive quarters of growth in new lending during 2013 – albeit from a low base – the emerging trend over the course of the year is a welcome one providing further evidence of a more active mortgage market. While the figures do show a year-on-year decline, this comes as no surprise, resulting as it does from the surge in activity in Q4 2012 ahead of the expiration of mortgage interest relief. With up to €2.5 billion worth of new mortgage lending issued in 2013, we will continue to closely monitor mortgage approvals and drawdown activity over the coming months for further signs of sustained growth. And we will be engaging with policy makers and other stakeholders to help ensure that housing supply constraints in key locations do not become a serious impediment to sustained growth.”

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

ENDS/

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

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