Increase In Number Of Mortgages Issued

The number of new mortgages issued in Q3 2012 represents an increase of 23.5% compared with the previous quarter and an increase of 10.4% compared with Q3 2011, according to The IBF/PwC Mortgage Market Profile.

This is the first year-on-year increase since Q3 2006.

A total of 3,983 new mortgages to the value of €663 million were issued during the third quarter of 2012, bringing to almost 10,000 (9,838) the total number of new mortgages issued during 2012 to date. The home formation segments of the market – first-time buyers and mover purchasers – continue to dominate what is now a smaller market in terms of overall activity. Together they account for more than 8 out of every 10 mortgages issued.

The Q3 data also shows that mortgage market activity is, for the first time in many quarters, back in positive growth territory again - as is evident from the following graph:

Commenting on the latest data, IBF's Director of Public Affairs, Felix O'Regan, said: Whereas data from previous quarters showed that contraction in activity continued to slow, the Q3 data is showing actual growth in activity – something we haven’t seen in some time. This is a very welcome trend and one we might hope to see sustained, particularly in light of reports from market analysts indicating a stabilisation in average house prices in Dublin, for example. Activity during the final quarter of this year will be closely watched as mortgages taken out after 31st December next will not qualify for mortgage interest relief. We will be well positioned to monitor trends more closely over the coming quarters with the help of new mortgage approvals data which we plan to publish shortly as a new lead indicator of future mortgage market activity."


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