Thursday 22 August 2019

Mortgage drawdowns jump as prices ease

Felix O’Regan
Felix O’Regan
Charlie Weston

Charlie Weston

THERE has been a strong rise in the number of mortgages taken out to buy homes.

The rise in mortgage drawdowns comes as property price increases have begun to ease.

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New figures from the Irish Banking and Payments Federation show that 10,157 mortgages were issued in the April to June period. This is a rise of 8.8pc.

This was over 800 more than the same quarter last year, and up 1,580 on the figures for the first three months of the year.

The value of the drawdowns was up by 12pc year on year, to €2.25bn in the second quarter.

First-time buyers are the largest segment of the new mortgage market, accounting for half of all drawdowns, the Banking and Payments Federation said.

Switching activity also recorded a year-on-year increase.

Almost 1,500 people remortgaged in the second quarter, a rise of 143 on the same quarter last year.

And there was also a rise in the number of people being approved for a mortgage during June.

Some 4,478 home loans were approved by lenders in June, a rise of almost 5pc on the same month last year. However, the June figure is down by 9pc on the May numbers.

Mortgages approved in June were valued at just over €1bn, with first-time buyers accounting for €550m of this.

Director of public affairs at the federation Felix O’Regan said the number and value of mortgages drawn down during the second quarter showed good growth.

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