The number of new mortgages being issued rose during the second quarter of 2012 on a year-on-year basis for the first time since early 2006.
A total of 3,225 new mortgages were issued during the quarter according to the IBF/PwC Mortgage Market Profile. The number of new mortgages totalled €524 million in value – up 22% on the preceding three months.
While the number of total mortgages issued was down 9.2 per cent, both the first-time buyer and mover purchaser segments recorded increased activity year-on-year, something which has not happened for six years.
First-time buyers and mover purchasers together account for four-fifths of all new mortgages issued at present, according to the study.
Speaking on the report, Pat Farrell the chief executive of the Irish Banking Federation, said: “These latest figures show that contraction in activity continues to slow significantly and the second quarter of this year has actually recorded modest growth in both first-time buyer and mover-purchaser activity – something not seen since the first quarter of 2006.
“Taken together with recent comments from property economists signalling stabilisation in house prices in key sectors of the Dublin market, we will be looking to the next quarter’s data for confirmation of the trend indicated in this quarter. The period to the year end is key as mortgages taken out after 31st December next will not qualify for mortgage interest relief.”