Home loans slump to 10-year low

The squeeze on first-time buyers has intensified as the amount of home loan credit has shrunk to the lowest level for 10 years, official figures show.

Analysts say that Europe’s most expensive home loans — for both variable and fixed-rate loans — and new restrictions on access to mortgage loans — is keeping a lid on home loan credit.

Central Bank figures published yesterday were for up to the end of March and showed that the amount of home loan credit available in standard variable rates is still rising — posting its 13th quarterly increase in a row. The amount outstanding for tracker rate loans has declined for the 14th successive quarter, while mortgages fixed for over a year rose by almost 12% in the early part of the year after huge falls in the previous 12 quarters.