2011 Ireland’s Mortgage Sector Anticipated To Be Worst Since 1971

According to the IBF/PwC Mortgage Market Profile, which was recently published, more than 3,600 mortgages with a total value of €623 million were given out in the third quarter of 2011. The results for this year are expected to be the lowest since 1971.

The amount of new leading for the third quarter is down more than 50 percent compared to the previous year. However, it’s up more than one percent in the previous quarter. While the latest quarter does show some growth, it’s relatively early to determine if the market is indeed recovering.

The market’s primary home purchaser fragment –Mover Purchasers and First-time Buyers – still control the small market. Together, they make up nearly four-fifths of all mortgage credit given out, which means a significant amount of mortgage credit is situated for the home purchasing segment.

Houses in Ireland

In the third quarter of 2011, more than 3,600 loans for home mortgages were issued, which is a decrease of more than 50 percent than from the third quarter of 2010 and more than one percent in the quarter before. It’s the first time since 2006’s third quarter that the amount of loans has risen in two successive quarters.

1 – The amount of mortgage loans approved for the mover purchaser and first-time buyer segments rose in the third quarter compared to the quarter before it.

2 – FTBs continue to be the principal segment, with a share increase of more than 45 percent… the highest since 2005.

3 – Mover-purchasers boosted their market share by nearly four percent from quarter to quarter.

Moneycoach.ie Director Frank Conway said the latest figures show that 2011 will be the worst year for mortgages since the early 1970s.

This assumption is based on the Department of the Environment’s combined reports, which has been keeping up with mortgages since 1970 along with the IBF report. In 1971, more than 11,500 mortgages were started in Ireland. Today, the assumption is that there will be more than 10,500 mortgages.

Photo by Matt J Newman.