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Strong quarter for Irish mortgage lending

Written by Robert McHugh, on 2nd Feb 2017. Posted in Ireland

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New mortgage drawdowns data for the fourth quarter has been issued by the Banking & Payments Federation Ireland today.

The numbers show €1.8bn in lending during the quarter, a 26% year-on-year increase and the highest level since the third quarter of 2009. Overall, the mortgage market increased to €5.7bn in 2016 from €4.9bn in 2015.

New lending, excluding re-mortgaging and top-ups, increased to €5bn from €4.4bn in 2015.

Property transactions were flat in volume terms in 2016 over 2015 as the stock of properties for sale on MyHome.ie fell to exceptionally low levels. However, as cash buyers exited the market, mortgage volumes still grew by 5%. Indeed in the fourth quarter 2016, mortgages accounted for 60% of all transactions, the highest proportion since 2011 and up from 50% in the first half of the year.

According to Davy Stockbrokers, "A decline in negative equity should drive more liquidity in the near term, but housebuilding will need to rise to 25,000 by 2020 to hit our €10bn mortgage market forecast."

Source: www.businessworld.ie

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