Central Bank: Demand for Mortgage Loans on the Increase

The Irish Central Bank’s quarterly Bank Lending Survey has shown an increase in demand for home loans in Ireland.

Figures reveal that there has been an increase in demand for mortgages since August, a positive sign for the economy and housing market.

However the survey also shows that deposit sizes have increased, potentially reflecting that it could be harder to get credit according to some commentators.

According to experts banks and mortgage lenders are looking closer at how well buyers will be able to repay a mortgage – based on criteria such as employment income and deposit size.

The Central Bank stated they had not requestedbanks to tighten lending criteria.

In other loans news this week figures from the Department of Finance show that over one third of mortgage holders in arrears are currently doing a deal with their bank to extend their loan.

The new figures reveal that of 17% of mortgages overall are currently in arrears – from a total of 700,000 mortgages.

If you are struggling with your mortgage you should talk to your creditor straight away, and you can also get advice from organisations like MABS (Money Advice and Budgeting Service).

LoansIreland.ie has a range of information on loans in Ireland. We also have a useful mortgage calculator tool you can view here.