Increase in Mortgage Drawdowns Driven by First-Time Buyers
Earlier this week, RTE reported an increase in both the value and the volume of mortgages drawn across Ireland in the first three months of 2019.
Since January, 8,577 new mortgages, to the value of almost €1.9 billion, were drawn down. According to the Banking & Payments Federation Ireland, this represents a 10.6% increase in value and an 8.9% increase in volume when compared to the same period last year.
Interestingly, first-time buyers were the single largest segment (both by volume and by value) as they continue to drive the mortgage market in Ireland. These figures are significant as it was suggested in the early part of the year that a disproportionate number of home buyers were securing mortgage approvals in order to access and hold exemptions to the macro-prudential lending rules (3.5 times annual salary), but not actually drawing down those mortgages. This does not appear to be the case. There is always a gap between the mortgage approval figures and the drawdown figures but this appears to driven by the persistent lack of supply in the marketplace – something that the team here at Victoria Homes are fully aware of and are working to address.
As we look towards the second quarter of the year, we know that 4,142 mortgages were approved in March and more than half of these are for first-time buyers. This tells us that demand remains significantly stronger than supply, despite the best efforts of the construction industry.
For would-be buyers struggling through the mortgage application process right now, AIB and Bank of Ireland are still the main lenders, with more than 60% of the market shared between them. Permanent TSB, Ulster Bank and KBC account for most of the remaining market, however, it is worth noting the impact that niche players like Pepper and Dilosk are having.
For buyers who have their loan approvals in place and are currently house-hunting for their ideal home, keep an eye on our developments page for news of upcoming launches: http://www.victoriahomes.ie/our-developments/
To discuss this and other housing matters in Dublin, please contact me directly on +353 (0) 87 937 0896, Derek@VictoriaHomes.ie or check out all of our current developments at www.victoriahomes.ie/
- Posted by newsupdates
- On April 26, 2019
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