Rate hikes push singles from market

THE five interest rate hikes imposed by the European Central Bank are pushing single people out of the housing market, according to research from IFG Mortgages.

Internal research conducted by IFG Mortgages, Ireland’s largest independent mortgage group, suggests that in the third quarter of 2006, the proportion of single applications fell from 40% to 35%, reflecting the their long-held view that this group of first-time buyers would be first to suffer from any interest rate increase.

Managing director of IFG Mortgages Trevor Grant said: “With people generally marrying later in life, the market had witnessed a trend of people buying their first home while still single, however following the series of interest rate rises we are now seeing a marked return to the more traditional joint applications. Many first-time buyers are either buying with their future life partner or clubbing together with a friend to qualify for their first major purchase.”