The Irish Banking Federation (IBF)/PwC Mortgage Market Profile, published today, shows that the number of new mortgage loans issued to First-Time Buyers and Mover Purchasers during Q2 2012 increased on a year-on-year basis.

A total of 3,225 new mortgages to the value of €524 million were issued during the second quarter of 2012. This represents a 22.6% increase on the number issued during the first quarter of 2012. More significantly, while the year-on-year trend shows a 9.2% decrease in the total number of mortgages issued, both the First-Time Buyer and Mover Purchaser segments recorded increased activity year-on-year for the first time since 2006.

-- Advertisement --

The key home purchaser 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 four-fifths of all new mortgages issued. In effect, 88% of all mortgage credit now goes to the home purchasing segments of the market.

Commenting on the latest data, Pat Farrell, IBF Chief Executive, stated: "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."

(CD/GK)