Irish mortgage market feels the pain
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19 May 2008
The value of new mortgage lending in Ireland fell by 20% to €6.3bn in Q1 2008 (£5.02bn), the lowest level since 2005, according to the Irish Banking Federation (IBF).
The bank’s data also shows that the volume of first-time buyers taking out new homes loans almost halved in the first three months of the year, compared with the same period last year.
Only 4,329 new buyers took out a mortgage during the first three months of the year, down from 7,919 at the same pint last year, representing a fall of 45%.
The overall number of mortgages issue in Q1 fell by 25% to 28,508, as a consequence of higher interest rates, slower economic growth and a loss of consumer confidence.
IBF Chief Executive, Pat Farrell, said: “Conditions in the mortgage market remain challenging. On the supply side, credit availability has tightened. On the demand side, there is a strong demographic cohort of potential house buyers but many of these appear to be holding off for the moment in anticipation of further house price reductions. At the same time, the switching market has continued to perform strongly.”
Analysts at stockbroker Davy, Scott Rankin predicts that the Irish mortgage market could fall by up to 17% this year.
