Business Property & Mortgages

Wednesday 27 August 2014

Banks are approving more mortgage requests

Charlie Weston Personal Finance Editor

Published 28/05/2013 | 05:00

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THERE has been a rise in the number of mortgage approvals in April compared with the same month last year.

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This reverses the trend of the first three months of the year.

A total of 1,433 mortgages to a value of €240m were approved by lenders during the month of April. This is up 9pc on the same month last year, and up 23pc on the figures for the previous month.

But despite approval, the funds may not end up being drawn down if buyers cannot find a property at a price that is within their budget. The value of the average mortgage approval was €167,418.

There had been a sharp fall in mortgage approvals in the first three months of the year, with experts blaming the ending of mortgage tax relief in December.

Irish Banking Federation director of public affairs Felix O'Regan said: "The increase in the number of new mortgage approvals in April is welcome evidence of renewed activity in the mortgage market."

Banks are expected to loan out around €4.5bn this year, up from €2.5bn. But chief executive of the Irish Brokers Association Ciaran Phelan said the low lending figures for the first three months of the year meant it was unlikely banks would achieve the expected mortgage lending predictions for this year.

Irish Independent

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