The IBF/PwC Mortgage Market Profile published today shows that 2,068 new mortgages to the value of €331 million were issued during the first quarter of 2013
These latest figures show a decline on the previous quarter reflecting particular factors at play: a front-loading of activity into Q4 2012 ahead of the ending of mortgage interest relief; and the fact that Q1 is normally the weakest quarter and Q4 the strongest for activity.
The key home purchaser segments of the market, First Time Buyers and Mover Purchasers, continue to dominate the market accounting for over 80% (82.1%) of new mortgages issued. In effect, almost 90% (89.5%) of all mortgage credit now goes to the home purchasing segments of the market.Commenting on the latest data, Felix O'Regan, IBF Director Public Affairs, stated:"The lower level of new mortgage lending recorded in this first quarter comes as no surprise and has been well flagged in the monthly approvals figures published by IBF during the quarter. It reflects a front-loading of activity into Q4 2012 ahead of the ending of mortgage interest relief, as well as the traditional seasonal weakness generally seen at this time of year. In effect, a significant level of borrowing activity which would ordinarily have taken place during Q1 2013 instead occurred before end-2012 to take advantage of the expiration of mortgage interest relief. Lenders report a healthy pipeline of borrower interest and we can expect to see this reflected in the mortgage approvals figures for April which should be available shortly."
The IBF/PwC Mortgage Market Profile can be viewed on the web at http://www.ibf.ie/.
Article Published: 20/05/2013