Ulster Bank makes €850m in mortgage finance available

Ulster Bank has announced that it is making €850m of new lending available to borrowers looking to purchase homes.

The money is being released due to strong demand for mortgage finance and an increase in approvals that now sees eight out of 10 first-time buyer mortgage applications approved.

The announcement of money for first-time buyers comes as house prices in Ireland continue to rise faster than the European average.

In the three months to the end of September, Irish house prices rose 3.7%, eight times higher than the EU average, which saw a drop of 0.5%.

Douglas Newman Good showed that prices for second-hand houses in Dublin rose by nearly 18% last year as the capital’s housing market recovered strongly.

Ulster Bank said that it may increase the €850m in personal lending if the right type of demand exists.

Head of branch banking at Ulster Bank, Jim Ryan, said that securing a mortgage is one of the biggest commitment that people make in their lives.

“We understand how important this ‘Yes’ can be — buying a home is for many, the biggest financial commitment that they make and we are working hard to help the full spectrum of mortgage customers achieve their ‘Yes’, from first-time buyers and movers to those trading up or coming to the end of the mortgage term.

“We are approving eight out of 10 first-time buyer mortgage applications and working with the balance to help them understand how to reach their goals,” he said.

The bank is forecasting a surge in demand for new mortgages this year.

“In 2013, we saw demand increase significantly for mortgage applications; we increased our market share and we are increasing the level of mortgage finance available in 2014. We want to support customers to make the moves and decisions that are right for them and we now have the expertise, funding and appetite available to give even more consumers the ‘Yes’ they want,” said Mr Ryan.