First-time buyers maintained share of Irish mortgage market in 2007 at 19.3% but down sharply from 2001

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News : Irish

Last Updated: Sep 17, 2008 - 1:21:19 PM

First-time buyers maintained share of Irish mortgage market in 2007 at 19.3% but down sharply from 2001
By Finfacts Team
Feb 13, 2008 - 1:44:18 PM

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FTB - First Time Buyer; RIL - Residential Investment Letting

The latest in the series of the IBF/PwC Mortgage Market Profile shows that new lending continues to moderate to what is termed "more sustainable levels" in a mortgage market that is still growing in overall terms. Published today by the Irish Banking Federation (IBF), the data also shows that first-time buyers are maintaining market share and that switching activity is growing strongly.

The latest IBF/PwC Mortgage Market Profile shows that 37,719 new mortgages to the value of some €8.3 billion were issued during the fourth quarter of 2007, bringing to 158,098 the total number of new mortgages issued in 2007 to a value of €33.8 billion.

First-time buyers (FTB) have increased their share (by volume) of the total mortgage market to 19.3% in 2007, which is up from 18% in 2006.

Davy Stockbrokers said last year that in 2001, the number of new Irish homes bought by first time buyers was 63% but the total had fallen to 33% by 2007.

The level of switching activity (re-mortgage) continues to increase and now accounts for 16.4% of all new mortgage lending (by volume) in 2007, compared to 13% in 2006. It recorded in Q4 2007 its highest market share to date, standing at 19.4% of all new mortgage lending (by volume).

At 19.4%, residential investment letting (RIL) has retained its share (by value) of the market from Q3 to Q4 2007.

Average Loan

The average RIL loan (investment) and re-mortgage grew modestly in Q4 to €326,300 and €259,700 respectively.
Average mover-purchaser and top-up loan sizes remained steady in Q4 compared to Q3 2007.
Average FTB (First Time Buyer) loan size fell by 2%.

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

“Our data is wholly consistent with all other indicators of housing market activity in showing that the mortgage market continues to adjust to more sustainable levels of new lending. That said, within a market that continues to grow in absolute terms and now stands at €140 billion, the first-time buyer share is staying consistently strong, the residential investment letting segment is proving resilient and activity in the switching market is intensifying.”

First-Time Buyers in the Irish Housing Market: A Survey of permanent tsb First-Time Buyers - - 2005 report