New Mortgage Lending Continues to Grow in Q4 2013
The IBF/PwC Mortgage Market Profile 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.
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 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.
Noel Brett of the Irish Banking Federation said: “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.”