BoI targets 11,000 house purchases

Bank of Ireland has launched a new fund that could result in the purchase of as many as 11,000 houses next year.

The bank has earmarked a €2bn fund to target first-time buyers and movers looking to purchase new homes.

Based on the average mortgage of €172,000, the bank has funding set aside for 11,600 mortgages.

Research carried out by the bank found that 84% of 25-35-year-olds who have never bought a home want a place to call their own and the vast majority want a bank to clearly explain the process of applying for and getting a mortgage.

Business strategy director with RED C, Carol Fanagan, who carried out the research for Bank of Ireland said that the findings indicate that there is a strong demand amongst this demographic to buy homes.

“Overall, the findings suggest the desire to buy is strong. But providing information and reassurance to first-time buyers is key to getting them to consider applying for a mortgage,” she said.

Bank of Ireland launched a €1.5bn fund last December to fund mortgages. That fund was oversubscribed and the bank is now replacing it with a new €2bn mortgage fund.

The launch of the fund coincides with the launch of Homebuyers’ Week, which runs from today until next Friday, Oct 19.

Director of consumer banking, Jonathan Byrne, said that there had been a notable spike in people inquiring about and applying for mortgages.

“We have seen a notable increase in activity levels in the last few months — a 39% increase in applications since the first quarter of the year — with increasing numbers of customers coming to us to talk about a mortgage. That’s why we’ve decided to host Homebuyers’ Week — to highlight to people that whether they are ready to buy now or just making plans, Bank of Ireland is eager to speak with them,” he said.

However, despite the nationwide increase in mortgage demand, Homebuyers’ Week will focus only on the greater Dublin area.

There are events in branches across Dublin, for customers and local home-related businesses.