Tuesday 27 September 2016

Mortgage market starts to pick up

Published 24/06/2016 | 02:30

Close to 2,700 mortgages were approved per month in the three months to the end of May, new figures show. Stock Photo: PA
Close to 2,700 mortgages were approved per month in the three months to the end of May, new figures show. Stock Photo: PA

There has been a rise in the number of people approved for a mortgage.

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Experts said the market was beginning to settle down after the disruption caused by the introduction of the Central Bank lending rules.

Close to 2,700 mortgages were approved per month in the three months to the end of May, new figures show. This was 368 more home-loan approvals per month than in the three months to the end of April.

And more than half of the mortgages approved up to May were for first-time buyers, figures from the Banking and Payments Federation Ireland show.

Most of the rest of the applications that were approved were for those moving house.

The value of mortgages approved in the three-month period was €523m, a rise of 7pc when compared with a year earlier. It was the first time the number of mortgages approved rose, compared with the same month a year previously, since last September.

Experts predicted that the market was on course for draw-downs of mortgages to total €5.5m this year.

Economists said the rise in loan approvals shows the shock to the system from the Central Bank lending restrictions, known as macro-prudential rules, was beginning to ease.

Dermot O'Leary, of Goodbody Stockbrokers, said: "Mortgage approvals continued to strengthen in May, providing support to the view that the hangover in the aftermath of the macro-prudential rules may be starting to wear off."

The average value of mortgages approved increased, and was €201,000 in May.

The numbers being approved to switch mortgage doubled to 162 in May, compared with the same month last year.

Irish Independent

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