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Friday 9 December 2016

Mortgage market bounces back as home loan drawdowns up 25pc

Charlie Weston Personal Finance Editor

Published 09/08/2016 | 11:18

First-time buyers are now borrowing an average of €183,000 Stock photo: Dominic Lipinski/PA Wire
First-time buyers are now borrowing an average of €183,000 Stock photo: Dominic Lipinski/PA Wire

The mortgage market is bouncing back with a jump in the number of home loans drawn down.

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In the April to June period the number of mortgages drawn down rose to 6,800, the banks said.

This was up 25pc compared with the previous quarter, with the market now at the highest level it was at since 2010.

First-time buyers still represent the largest number of buyers, accounting for almost half of all drawdowns, the Banking & Payments Federation Ireland data indicates.

The 6,803 mortgages had a value of € 1.29bn in the second quarter of this year.

Economist with Goodbody Stockbrokers Dermot O’Leary said the figures suggest that the market is recovering from the shock of the introduction of Central Bank mortgage lending caps.

“The latest mortgage data suggests the hangover following the introduction of the macro-prudential rules is wearing off, with good momentum going into the second half of 2016.”

The banking figures indicate that property prices are holding up.

The average amount drawn down by both first-time and mover-purchasers has risen by around €30,000 in the past three years.

First-time buyers are now borrowing an average of €183,000.

Just over €230,000 is being borrowed by the average mover, the figures show.

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