Monday 11 December 2017

Slight rise in June mortgage lending but market still on knees - experts

Charlie Weston

Charlie Weston

THERE was a slight rise in mortgage lending in June, but experts said the home-loans market was still on its knees.

New figures from the Central Bank show that an extra €94m was loaned out for home purchases in June compared with the previous month.

This rise in mortgage lending contrasts with a contraction in lending for home buying in May, June, March, February and January, according to the data from the regulator.

Experts pointed out that mortgage lending is at a 40-year low because of high unemployment, banks’ reluctance to lend and low consumer confidence.

Overall lending to households was up by €55m in June, compared with fall of €264m in May.

The fall in May was due to more mortgages and other loans reaching the end of their term than new ones being taken out.

But the overall lending levels were down when compared with those for the previous year.

There was a fall of €3.2bn in the deposits held by the private sector in June.

Banks and building societies have been cutting deposit rates at the moment, with the latest to drop rates EBS and AIB.

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