New mortgage lending ‘to rise to €10bn’ next year

New mortgage lending will rise to €10bn next year but the loans market will remain constrained because too few new homes are coming on stream, a leading mortgage expert has said.

Michael Dowling, chair of the mortgage committee at industry group the Irish Brokers’ Association, said lenders will sell between €7.5bn and €8bn in new home loans this year and €10bn next year, reflecting the gradual pickup of housing supply, mainly for first-time buyers.

Almost €6bn of new mortgages were sold to the end of August, figures show.