Mortgage approvals up in fresh sign of rebound
THE number of people who got mortgage approval to buy a home or holiday home jumped 8.8pc in June compared to the same month last year, in another sign that the property market is slowly recovering.
The Irish Banking Federation, which revealed the figures yesterday, did not say how many people actually took out loans to buy homes rather than seeking permission to borrow. Those figures will be published next month. The number of people given permission to borrow for a remortgage or top-up fell 7.6pc but the average value rose to more than €108,000.
Irish residential property prices recorded their first annual rise in June since the property crash, the Central Statistics Office said earlier this month. Property prices across the country increased by 1.2pc, the first rise since January 2008.
The 1,600 mortgages approved in June totalled €280m in value, the IBF added.
"This growth, combined with reports from lenders of good levels of applications, signals a healthy pipeline of mortgage activity which is expected to be reflected in future drawdown figures," the IBF said in a report.
While lending is rising, the size of the average loan approved is smaller. The average mortgage approval value for buying a house was €174,675 in June, which was 2.6pc less than a year ago.
The vast majority of loans were taken out for houses. Some 1,518 approvals were for house purchases out of 1,652.