Boost to mortgage market as BoI doubles loan funds
THE mortgage market has received a huge boost after one of the leading banks said it would double the amount of money it loans out to first-time buyers and movers.
Bank of Ireland (BoI) said it was putting aside another €2bn to fund house purchases this year on top of €2bn it already has in place for this year.
The move to put a €4bn fund together is a massive vote of confidence in the property market and comes just after new figures showed the first rise in house and apartment prices across the country since the housing collapse began in 2008.
Experts said the main lenders were now on course to issue mortgages worth €3.4bn this year. This is almost one-third more than the value of mortgages handed out last year.
Gavin Kelly, BoI director of consumer banking, said: "We're seeing strong evidence that residential property prices continue to stabilise, as are incomes and the number of people in employment.
"These factors are contributing to improved consumer sentiment and an increase in the number of people considering the purchase of a home or changing home."
Meanwhile, the Central Bank will bring in a British debt charity to hammer out deals for people with borrowings that they cannot repay, it has emerged.
The move comes after the Money Advice and Budgeting Service (MABS) pulled out of what is known as the multi-debt pilot scheme.
Now regulators have appointed the UK's StepChange debt charity to co-ordinate the new project.
The move is part of a pilot plan to get banks, credit unions and credit card issuers to agree to ease the repayments for those with multiple debts.