The latest figures from the IBF/PwC Mortgage Market Profile, published today, show that the number of new mortgages issued in Q2 2013 has increased by 56.1% on the previous quarter.
In total, 3,229 new mortgages to the value of €518 million were issued during the second quarter of 2013. With the first quarter traditionally the weakest in any year, followed by recovery in the second quarter, the latest figures reflect a very modest 0.1% growth in Q2 2013 compared to the same quarter in 2012. However, this is the first time year-on-year growth of any kind has been recorded in the second quarter since 2006.
The home formation segments of the market – first-time buyers and mover purchasers – continued to dominate the market accounting for over 85% (85.2%) of new mortgages issued. This compares with only 35% of new mortgages five years earlier. In effect, over 90% (91.1%) of all mortgage credit now goes to the home purchasing segments of the market.
The average loan size now stands at just over €160,000, up marginally (0.2%) on Q1 2013 and down 1.4% year-on-year.
As lenders continue to report a healthy pipeline of borrower interest, IBF has welcomed the significant quarterly uplift recorded in both the volume and value of new mortgages issued in Q2 2013.
The IBF/PwC Mortgage Market Profile can be viewed on the IBF website here.