Tuesday, May 13 11:26:36
The value of home mortgages drawn down by borrowers rose by 71.6pc in the first three months of this year compared to the same period in 2013.
The IBF/PwC Mortgage Market Profile, published today, shows that a total of 3,425 new mortgages to the value of €568 million were drawn down by borrowers here during the first quarter of 2014.
These latest figures represent an increase of 65.6pc in volume and 71.6pc in value on the corresponding first quarter of 2013. Although the first quarter is traditionally the weakest in any year, these latest figures represent the first time a year-on-year increase has been recorded in the first quarter of the year since 2006.
The key home purchaser segments of the market, First Time Buyers and Mover Purchasers, continue to dominate the market accounting for almost 85.9pc of new mortgages issued. In effect, over 90pc (91.2pc) of all mortgage credit now goes to the home purchasing segments of the market.
Commenting on the figures, IBF Chief Executive, Noel Brett said that the figures are the best in four years.
“We welcome the notable year-on-year increase in the number of new mortgages drawn down during the first quarter of this year. Notwithstanding the fact that Q1 is traditionally the weakest of the four quarters in any year, the volumes recorded are the highest Q1 figures we have seen since 2010 and the first time we have seen Q1 year-on-year growth since 2006. Today's figures provide further encouraging evidence that the market continues to recover. That said, we remain concerned that housing supply constraints in key locations are becoming a serious impediment to sustained growth; and this is reflected in the widening gap we see developing between the level of mortgage approvals and actual drawdown," he said.