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Thursday, March 08, 2012
About half of first-time buyers plan to purchase a house inside the next 12 months, despite most current and prospective houseowners not having faith in banks approving mortgage applications.
That is according to a new survey from property website MyHome.ie, which found that 43% of people believe that financial institutions are overly cautious when granting mortgage approval. Some 65% of respondents who currently own a home believe the banks are not lending, while 52% of first time buyers agree.
Despite this, half of the latter category said they plan to purchase a property in the next 12 months, with only 9% saying they definitely wouldn’t be looking to buy. The survey, importantly, suggests that a significant number of first time buyers have mortgage approval, while many have saved up cash for a deposit on a house.
Virtually all homeowners and prospective buyers anticipate further falls in house prices.
"Availability of finance was the number one factor for first time buyers, and was also in the top three for existing homeowners," according to MyHome.ie managing director, Angela Keegan.
"The fact that so many respondents believe the institutions are over regulated and over cautious reflects the widespread frustration felt by prospective buyers of being locked out of the market. Unless access to finance is freed up, the level of transactions will remain at low levels," she added.
AIB said, this week, that it anticipates approving more than €1bn worth of mortgages this year, up form the €845m it approved during 2011.
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