Home loans showing sustained growth as approvals up 11.9pc
THERE has been a rise in the number of people approved for a mortgage to buy a house or apartment, bankers have said.
The number of approvals increased by 11.9pc on an annual basis in July to a figure of 1,875, according to the Irish Banking Federation.
This will amount to €325m, if all the mortgages that are approved are actually drawn down by house buyers.
An Irish Banking Federation statement welcomed what it called a "sustained growth" in both the volume and value of mortgage approvals last month.
Nine out of 10 of the approvals were for house purchases.
But separate figures from the Central Bank yesterday indicated the value of mortgages actually drawn down in July were down, when compared with the same month last year.
There was a fall of more than €230m in new mortgages issued.
Overall, loans to households declined at a rate of 4.4pc in July, when compared with the same month last year.
Lending for house purchases was 2.2pc lower on an annual basis.
Meanwhile, lending for consumption and other purposes was also down and fell by some 11pc over the same period.
The Central Bank figures showed that households were repaying loans faster than new ones were being issued.
Repayments made on loans by households also exceeded new loans being drawn down by €513m in July.
This, the Central Bank said, was mainly driven by a decrease of some €231m in loans being issued for mortgages to buy property.