Average mortgage below €200k

THE average mortgage has fallen below €200,000 for the first time since records began in 2005.

New data has revealed that the average size of a mortgage in the last quarter of this year was €192,445, down from a peak of €283,540 in the first quarter of 2008.

Figures for the quarter showed that new mortgage lending was €624 million, which is less than half the amount lent out in thecorresponding quarter of last year.

The Irish Banking Federation/PwC mortgage market profile, however, showed that lending is up on the €577m recorded in the first quarter of the year, which is, however, usually a quiet period.

The number of new mortgages issued in the second quarter was 3,551, a drop of nearly 55% from the same period last year, when 7,827 mortgages were issued.

First-time buyers and mover purchasers now account for more than three quarters of the market.

FTBs remained the largest segment, and were the only sector that increased its market share, rising to 43.3%. The remortgage sector was 10.6%.

The report said that lenders blame uncertainty around the employment situation and property price trends, together with a weakening consumer sentiment as reasons the mortgage market is so weak.

They are also intent on the need for prudent lending, with a renewed focus on the borrower’s capacity to repay.