News
Mortgage Market Activity Remains Weak in Q2
August 16, 2011
The IBF/PwC Mortgage Market Profile published today shows that 3,551 new mortgages to the value of €624 million were issued during the second quarter of 2011.
The volume of new lending in Q2 is down 54.6% on the previous year. And while it is up 9% compared to the previous quarter, the seasonal pattern of mortgage lending can typically result in a higher level of lending at this stage of the year.
However, the key home purchaser segments of the market, first-time buyers and mover purchasers, continue to dominate this smaller market. Together they now account for over 78% of the market by value and 70% by volume - more than three-quarters of all mortgage credit issued now goes to the home purchasing segments of the market.
Lenders generally report that subdued underlying demand for new mortgage finance continues to be driven by a range of factors. These include uncertainty around the employment situation and property price trends, together with a weakening consumer sentiment. At the same time, lenders 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:
“Current mortgage market activity reflects the general macroeconomic environment. In these challenging times manageable borrowing and prudent lending are to be expected.”
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
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