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Mortgage approvals up 30pc in December

Thursday, January 31 10:15:45

There was a 29.6pc rise in the number of mortgage approvals in December compared to the same month a year earlier, the latest figures from the Irish Banking Federation (IBF) showed today.

The IBF Mortgage Approvals Report shows that a total of 1,446 mortgages were approved by lenders here during December 2012 to the value of E234 million.

This represents a volume increase of 29.6pc and a value increase of 29.3pc over the same month in 2011. The month-on-month picture shows a reduction in the numbers - most likely due to December being a shorter than normal working month and a front-loading of activity into N ovember ahead of the ending of mortgage interest relief.

The vast majority (92pc) of the 1,446 mortgage approvals was for property purchase, which itself showed a year-on-year increase of over 40pc; the balance of approvals was for re-mortgages and top ups. Commenting on the data, IBF's Director of Public Affairs, Felix O'Regan, stated: "As the IBF Mortgage Approvals Report is a lead indicator of future mortgage market activity, we expect this evidence of renewed activity to be reflected in the actual mortgage drawdown figures for Q4 2012 when the IBF/PwC Mortgage Market Profile is published in February."